M/S Radhamani Exports Private Limited vs. The State Of Karnataka

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WP/11597/2025HC KarnatakaGSTCNR KAHC01025794202521 April 2025Bench: S.R.KRISHNA KUMAR6 pages
For Petitioner: SRI. K. M. SHIVAYOGI SWAMY, ADVOCATEFor Respondent: SRI. HEMAKUMAR K., AGA

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Cause title — parties, addresses and appearances
- 1 - NC: 2025:KHC:16425 WP No. 11597 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 11597 OF 2025 (T-RES) BETWEEN: M/S. RADHAMANI EXPORTS PRIVATE LIMITED, REGISTERED UNDER THE GST ACT.2017., NO. 19/A, GROUND FLOOR, SINGASANDRA VILLAGE, BEGUR HOBLI, BANGALORE SOUTH TALUK, BENGALURU- 560 068. (REPRESENTED BY ITS DIRECTOR MUKESH KUMAR PODDAR, AGED 49 YEARS) …PETITIONER (BY SRI. K. M. SHIVAYOGI SWAMY, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REP BY ITS SECRETARY, DEPARTMENT OF FINANCE GOVERNMENT OF KARNATAKA, AMBEDKAR VEEDHI, BENGALURU- 560 001. 2. THE ASSISTANT COMMERCIAL TAXES LGSTO-016, 6TH FLOOR, TTMC BUILDING, KORAMANGALA, BENGALURU- 560 047. …RESPONDENTS (BY SRI. HEMAKUMAR K., AGA) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ORDER BEARING NO. ACCT(P)/LGSTO-16/DRC- 07/2024-25 DATED 29.08.2024 PASSED U/S 73(9) OF THE Digitally signed by AASEEFA PARVEEN Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:16425 WP No. 11597 of 2025 CGST/KGST ACT, BY THE 2ND RESPONDENT VIDE ANENXURE-F, IN RELATION TO THE FINANCIAL YEAR 2019-20 AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER In this writ petition, the petitioner seeks the following reliefs: a) Issue writ of certiorari or Writ in the nature of certiorari quashing the impugned Order bearing No.ACCT(P)/LGSTO-16/DRC-07/2024-25 dated 29.08.2024 passed u/s 73(9) of the CGST/KGST Act, by the 2nd respondent vide Annexure-F, in relation to the financial year 2019-20. b) Issue a writ of declaration or any other appropriate writ or direction declaring the provisions of Section 16(2) (C) of CGST Act/SGST Act, 2017 as being illegal, unreasonable, arbitrary and discriminatory and therefore to be struck, down as violative of Article 14, 19 and 300A. c) Issue Writ of Mandamus or Writ in the nature of mandamus, directing the 2nd respondent to allow the ITC to the extent of the taxes collected from the NC: 2025:KHC:16425 registered suppliers in so far as the petitioner is concerned. d) Issue such other writ or orders as deemed fit in the circumstances of the case in the interest of justice and equity.

2.

Heard the learned counsel for the petitioner and the learned Additional Government Advocate for respondents and perused the material on record.

3.

A perusal of the material on record will indicate that on 15.03.2024, the respondent issued Form ASMT-10 notice, calling for explanation as to the difference/discrepancy between Form GSTR3B and Form GSTR2A submitted by the petitioner. Pursuant to the same, the respondent issued show cause notice to the petitioner, who did not submit any rely to the same and consequently, the respondent proceeded to pass the impugned order at Annexure-F dated29.08.2024 which is assailed in the present petition. NC: 2025:KHC:16425

4.

Learned counsel for the petitioner submits that due to bona fide reasons and unavoidable circumstances and sufficient cause, the petitioner could not submit his reply to the show cause notice and the impugned ex-parte order deserve to be quashed and the matter is remitted back to the respondent for reconsideration of the matter afresh in accordance with law by providing an opportunity to the petitioner to submit a reply to the show cause notice and thereafter to pass appropriate orders. It is also submitted that the impugned orders are vitiated on account of non-consideration of the Circular issued by the Central Government, Government of India, bearing No.183/15/2022-GST dated 27.12.2022. It is therefore submitted that the impugned orders deserve to be quashed. 5. per contra, learned Additional Government Advocate for respondent would support the impugned orders and submit that there is no merit in the petition and the same is liable to be dismissed, especially when the NC: 2025:KHC:16425 petitioner did not exercise his due diligence in participating in the impugned proceedings.

6.

A perusal of the material on record including the impugned order will indicate that it is an undisputed fact that the petitioner did not respond/reply to the show cause notice and the impugned ex-parte orders have been passed without hearing the petitioner. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit the reply to the show cause notice and participate in the proceedings was due to bona fide reasons, unavoidable circumstances and sufficient cause, by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner, I deem it just and appropriate to set aside the impugned orders and remit the matter back to the respondent for reconsideration afresh in accordance with law by issuing certain directions.

7.

In the result, I pass the following: NC: 2025:KHC:16425 ORDER i) The Writ Petition is allowed; ii) The impugned order passed by respondent at Annexure-F dated 29.08.2024 is hereby set aside; iii) The matter is remitted back to the respondent for reconsideration afresh in accordance with law, bearing in mind the aforesaid Circular bearing No.183/15/2022-GST dated 27.12.2022; iv) The petitioner shall appear before the respondent on 19.05.2025 on which date, he shall submit his reply to the show cause notice along with relevant documents. v) Upon the petitioner submitting a reply along with relevant documents to the show cause notice, on 19.05.2025, the respondent shall afford a reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. (S.R.KRISHNA KUMAR) JUDGE NS CT:TSM, List No.: 1 Sl No.: 21

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.