M/S I Sky Automations Private Limited vs. The Assistant Commissioner
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The petitioner, M/s I SKY AUTOMATIONS PRIVATE LIMITED, filed a writ petition challenging an order dated 29.07.2024 passed by the Assistant Commissioner of Commercial Taxes (respondent). The respondent had issued a show cause notice on 26.03.2024, to which the petitioner failed to submit a reply. Consequently, the respondent passed an ex-parte adjudication order (Form GST DRC-07). Subsequently, a sum of Rs. 11,93,426/- was recovered from the petitioner's Electronic Credit Ledger on 20.01.2025. The petitioner contended that their omission to reply was due to bonafide reasons and unavoidable circumstances, seeking an opportunity to present their case.
Held
The Court held that the impugned adjudication order dated 29.07.2024 was an ex-parte order passed without the petitioner submitting a reply to the show cause notice or contesting the proceedings. Adopting a justice-oriented approach and to provide one more opportunity to the petitioner, the Court deemed it appropriate to set aside the impugned adjudication order. The matter was remitted back to the respondent to the stage of the petitioner submitting a reply to the show cause notice. The respondent was directed to consider any additional pleadings and documents submitted by the petitioner and proceed further in accordance with law. The writ petition was allowed.
Key Issues
1. Whether the impugned ex-parte adjudication order dated 29.07.2024, passed by the respondent, is void, arbitrary, illegal, and violative of the principles of natural justice, warranting its setting aside and remand for fresh consideration? Petitioner's contention: The petitioner argued that their failure to respond to the show cause notice was due to bonafide reasons and unavoidable circumstances. They contended that the ex-parte order was passed without providing them a fair opportunity to present their defence, thus violating the principles of natural justice. They sought a remand to the adjudicating authority for a fresh consideration of the matter. Respondent's contention: The learned Additional Government Advocate submitted that there is no merit in the petition and it is liable to be dismissed.
Sections Cited
None explicitly discussed or named in the judgment text provided.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER In this petition, petitioner has sought for the following reliefs:
“Issue a writ of Mandamus or any other order, or direction declaring the impugned order vide Reference No. ZD290724092796K in the ACCT (P)/LGSTO-025/DRC- 07/2AvsR3B/2024-25 vide FORM GST DRC-07 dated 29.07.2024 annexed as Annexure-A passed by the respondent as being void, arbitrary, illegal, violative of principles of natural justice and to consequently set aside the same. Remand back the matter to the adjudicating authority for fresh consideration.”
A perusal of the material on record will indicate that on 26.03.2024, respondent No.1 issued the show cause notice to which the petitioner did not submit any reply, as a result of which, respondent No.1 proceeded further and passed the impugned Order-in-Original dated 29.07.2024 followed by recovery of sum of Rs.11,93,426/- from the Electronic Credit Ledger of the petitioner on 20.01.2025. 3. It is submitted that inability and omission on the part of the petitioner to submit the reply to the show cause notice and NC: 2025:KHC:17127 contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause, and as such, it is necessary to provide one more opportunity in favour of the petitioner by setting aside the impugned adjudication Order and remitting the matter to the respondent No.1 for reconsideration, in accordance with law.
Per contra, learned Additional Government Advocate submits that there is no merit in the matter and same is liable to be dismissed.
A perusal of the impugned adjudication Order dated 29.07.2024 indicate that undisputedly, same is an ex-parte adjudication Order without petitioner submitting reply to the show cause notice or contesting the proceedings.
Under these circumstances, by adopting justice oriented approach and in order to provide one more opportunity to the petitioner, I deem it appropriate to set-aside the impugned adjudication Order at Annexure-A dated 29.07.2024 and remit the matter to the respondent to the stage of petitioner submitting reply to the show cause notice and to proceed further in accordance with law. NC: 2025:KHC:17127
In the result, I pass the following: ORDER (i) Writ Petition is allowed. (ii) Annexure-A dated 29.07.2024 is hereby set- aside.
(iii) Matter is remitted to the respondent for reconsideration afresh, in accordance with law.
(iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondent, who shall consider the same and proceed further in accordance with law. (S.R.KRISHNA KUMAR) JUDGE
kcm List No.: 2 Sl No.: 62
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.