M/S Jmccpl - Chvnr (Joint Venture Unregistered Entity) vs. The Commissioner Of Commercial Taxes
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Cause title — parties, addresses and appearances
ORDER U/S 73(9) OF THE LEELAVATHI S R Location: High Court of Karnataka NC: 2025:KHC:12706 KGST/CGST ACT 2017 BEARING NO. DCCT(AUDIT)/HSN/GST- ADT/DRC-07/2024-25/T-650 DTD 12.08.2024 ENCLOSED AT ANNEXURE-E PASSED BY THE R-2 AND ETC.
THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
ORAL ORDER
In this petition, the petitioner seeks following reliefs:
“(A) Issue appropriate writ in the nature of certiorari by quashing the impugned Assessment/Adjudication Order u/s. 73(9) of the KGST/CGST Act, 2017 bearing No.D.C.C.T.(Audit)/HSN/GST-ADT/DRC-07/2024-25/T- 650 dated 12.08.2024 enclosed at Annexure-E passed by the Respondent No.2; (B) Issue any other further order/orders or directions as this Honorable Court may deem fit and appropriate on the facts and circumstances of this case.”
Heard learned counsel for the petitioner and learned HCGP for the respondents and perused the material on record.
A perusal of material on record will indicate that pursuant to the intimation in DRC-01A dated 24.05.2024 issued by respondent No.2, since there was no reply to the said intimation by the petitioner, respondent No.2 issued a show cause notice dated NC: 2025:KHC:12706
2024 under Section 73(9) of the CGST Act/KGST Act 2017, to which the petitioner filed its reply along with supporting documents dated 10.06.2024 and the said reply was duly acknowledged by respondent No.2 on 10.06.2024 itself. Thereafter, respondent No.2 issued two endorsement letters dated 31.07.2024 and 05.08.2024 calling upon the petitioner to reply to the said notices and also appear for hearing on the date fixed in the said endorsements to which the petitioner did not file any reply as he had already filed reply to the previous notice and was of the presumption that the same would be considered. Thereafter, without considering the said reply and incorrectly stating that the petitioner had not submitted its reply, respondent No.2 has proceeded to pass the exparte order at Annexure-E dated 12.08.2024, confirming the total demand of Rs.1,35,02,487/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that the petitioner he had filed reply dated 10.06.2024 to the notice dated 30.05.2024 and the said reply was acknowledged on the same day itself and hence, the petitioner did not file any reply to the endorsements issued by respondent No.2 and therefore, without NC: 2025:KHC:12706 considering the reply dated 10.06.2024, respondent No.2 has passed the impugned ex-parte order. It is further submitted that the inability and omission on the part of the petitioner to submit a reply to the said endorsements was due to bonafide reasons, unavoidable circumstances and sufficient cause and submits that if one more opportunity is provided, by setting aside the impugned order, the petitioner would submit a reply to the said endorsements and contest the proceedings.
Per contra, learned HCGP for the respondents submits that since the petitioner has submitted reply to notice dated 30.05.2024, the petitioner cannot complain that he was not aware of impugned proceedings and as such, there is no merit in the petition and the same is liable to be dismissed.
Under these circumstances, having regard to the specific assertion on the part of the petitioner that his inability and omission to submit replies to the endorsements dated 31.07.2024 and 05.08.2024 and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause, I deem it just and appropriate to adopt a justice oriented approach and provide one more opportunity to the petitioner by setting aside the NC: 2025:KHC:12706 impugned order at Annexure-E dated 12.08.2024 and remitting the matter back to respondent No.2 for reconsideration of the matter afresh in accordance with law.
In the result, I pass the following: ORDER
(i) The petition is hereby allowed.
(ii) The impugned order dated 12.08.2024 passed by respondent No.2 under Section 73(9) of the KGST/CGST Act, 2017, at Annexure-E is hereby set aside.
(iii) The matter is remitted back to respondent No.2 for reconsideration afresh, in accordance with law.
(iv) The petitioner is directed to appear before respondent No.2 on 28.04.2025 at 11:0 a.m., without awaiting further notice from respondent No.2. (v) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by respondent No.2, who shall provide sufficient and reasonable opportunity to the NC: 2025:KHC:12706 petitioner and hear them and proceed further in accordance with law.
(vi) It is further made clear that in the event petitioner does not appear before respondent No.2 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
BMC List No.: 1 Sl No.: 56
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.