BharatTaxGST

M/S Forest Contractor vs. Union Of INDIA

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WP/6987/2025HC KarnatakaGSTCNR KAHC01010314202503 April 2025Bench: S.R.KRISHNA KUMAR7 pages
For Petitioner: SRI.APRAMEYA K, ADVOCATE FOR SRI.ATUL KRISHNA RAO ALURFor Respondent: SRI.MADANAN PILLAI, ADVOCATE FOR R.1; SRI.HEMAKUMAR K, AGA FOR R.2 AND R.3
AI SummaryRemanded

Facts

The petitioner failed to reply to a show cause notice issued by the GST authorities regarding discrepancies between GST R-7 and GSTR 3B. Consequently, ex-parte adjudication orders were passed. The petitioner claimed inability to reply due to bona fide reasons and sought to quash the orders.

Held

The Court set aside the ex-parte adjudication orders due to the petitioner's failure to respond to the show cause notice for bona fide reasons. The matter was remitted back to the respondent for fresh consideration, providing the petitioner an opportunity to submit a reply.

Key Issues

Whether ex-parte adjudication orders passed without considering the petitioner's bona fide inability to respond to a show cause notice should be set aside and the matter remanded for fresh consideration.

Sections Cited

Section 73

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
- 1 - NC: 2025:KHC:14273 WP No. 6987 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.6987 OF 2025 (T-RES) BETWEEN: M/S.FOREST CONTRACTOR DOOR NO.413, 3RD CROSS O P O ROAD CHICKABALLAPUR - 562101 (REPRESENTED BY ITS PROPRIETOR SRI.BURUDAGUNTE FAKRUDDINSAB MOHAMMAD HANEEF) …PETITIONER (BY SRI.APRAMEYA K, ADVOCATE FOR SRI.ATUL KRISHNA RAO ALUR) AND: 1. UNION OF INDIA THROUGH ITS SECRETARY (REVENUE) MINISTRY OF FINANCE DEPARTMENT OF REVENUE GOVERNMENT OF INDIA NORTH BLOCK NEW DELHI - 110 001 2. THE STATE OF KARNATAKA REPRESENTED BY THE PRINCIPAL SECRETARY FINANCE DEPARTMENT GOVERNMENT OF KARNATAKA BENGALURU - 560 001 Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:14273 WP No. 6987 of 2025 3. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (VIGILANCE-02) V FLOOR, A BLOCK ROOM NO.504, V.T.K.-2 BUILDING KORAMANGALA BENGALURU - 560047. …RESPONDENTS (BY SRI.MADANAN PILLAI, ADVOCATE FOR R.1; SRI.HEMAKUMAR K, AGA FOR R.2 AND R.3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ADJUDICATION PASSED BY THE RESPONDENT NO.3 BEARING NO MA290324073362X DATED 18/3/2024 AT ANEEXURE-E FOR THE ASSESSMENT YEAR 2018-19 IN SO FOR AS THE PETITIONER IS CONCERNED AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, 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:

"i) Issue a writ of certiorari, or Writ of Certiorari quashing the impugned adjudication passed by the respondent No.3 bearing No.MA290324073362X dated 18.03.2024 at Annexure-E for the assessment year 2018- 19 in so far as the petitioner is concerned. NC: 2025:KHC:14273 ii) Issue a writ of certiorari, or writ of certiorari quashing the impugned issued by respondent No.3 bearing No:JCCT(VIG)/ACCT/(VIG)-02/INS1446/2023-24 dated 18.03.2024 at Annexure-F for the assessment year 2018- 19 in so far as the petitioner is concerned.

iii) Issue writ or declaration or writ in the nature of the declaration declaring that supply of pure services to the Forest Department is exempted from payment of KGST/CGST Act, as per the Notification No.11/2017 Central Tax (Rate) dated 28.06.2017 as per Annexure-H in so far as the petitioner is concerned.

iv) Issue writ or declaration or writ in the nature of the declaration declaring that supply of pure services to the Forest Department is exempted from payment of KGST/CGST Act, as per the Notification No.12/2017 Central Tax (Rate) dated 28.06.2017 as per Annexure-J in so far as the petitioner is concerned.

v) Issue any other writ or directions deemed fit, in the facts and circumstances of the case, including the cost of the Writ Petition, in the interest of justice and equity."

2.

Heard the learned counsel for the petitioner, the learned counsel for respondent No.1 and Additional Government Advocate for respondent Nos.2 and 3 and perused the material on record.

3.

A perusal of the material on record would indicate that respondent No.3 received an information stating that there is NC: 2025:KHC:14273 difference between the GST R-7 and GSTR 3B. On 20.01.2024, the respondent No.3 issued intimation in DRC 01A under Section 73 of the KGST Act, calling for explanation as to the difference/discrepancy between the GST R-7 and GSTR 3B. Pursuant to the same, the respondent issued show cause notice dated 30.01.2024 to the petitioner, who did not submit any reply to the same and consequently, the respondent proceeded to pass the impugned orders at Annexure-E and Annexure-F both dated 18.03.2024, which are assailed in the present petition.

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 orders deserve to be quashed and the matter is remitted back to the respondents 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 NC: 2025:KHC:14273 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 petitioner did not exercise his due diligence in participating in the impugned proceedings.

6.

A perusal of the material on record including the impugned orders 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. NC: 2025:KHC:14273

7.

In the result, I pass the following: ORDER i) The Writ Petition is allowed;

ii) The impugned orders passed by respondent No.3 at Annexure-E and Annexure - F both dated 18.03.2024, are 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 28.04.2025 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 28.04.2025, the respondent shall afford a reasonable opportunity to the petitioner and hear him and proceed further in accordance with law subject to the petitioner paying cost of Rs.10,000/- to the respondent. NC: 2025:KHC:14273 vi) It is further made clear that in the event petitioner does not appear on 28.04.2025, the present order shall stand automatically recalled/cancelled and the present petition shall stand revived/ restored without further orders and without reference to the Bench. (S.R.KRISHNA KUMAR) JUDGE

NBM List No.: 1 Sl No.: 13

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.