Great Sands Consulting Private Limited vs. The Deputy Commissioner Of
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The petitioner, Great Sands Consulting Private Limited, filed writ petitions challenging an order dated 30.11.2024 passed by the Deputy Commissioner of Commercial Taxes (Audit)-1.9 DGSTO-1. The respondent had issued a Form ASMT-10 notice on 21.08.2024, pointing out discrepancies between the petitioner's GSTR-3B and GSTR-2A filings. Subsequently, a show cause notice was issued. The petitioner failed to submit a reply to the show cause notice, leading the respondent to pass an ex-parte order. The petitioner contended that their failure to reply was due to bona fide reasons and unavoidable circumstances, and that the impugned order did not consider Circular No.183/15/2022-GST dated 27.12.2022.
Held
The Court allowed the writ petitions. It held that it is an undisputed fact that the petitioner did not respond to the show cause notice, leading to an ex-parte order without hearing the petitioner. Acknowledging the petitioner's assertion of bona fide reasons, unavoidable circumstances, and sufficient cause for their omission, the Court adopted a justice-oriented approach. To provide one more opportunity, the Court set aside the impugned order and remitted the matters back to the respondent for fresh consideration in accordance with law. The Court directed the respondent to bear in mind Circular No.183/15/2022-GST dated 27.12.2022. The petitioner was directed to appear before the respondent on 21.04.2025 to submit their reply to the show cause notice along with relevant documents, after which the respondent was to afford a reasonable opportunity of hearing and proceed further.
Key Issues
1. Whether the impugned ex-parte order passed by the respondent is liable to be quashed on the ground that the petitioner failed to submit a reply to the show cause notice due to bona fide reasons, unavoidable circumstances, and sufficient cause, thereby violating the principles of natural justice? 2. Whether the impugned order is vitiated by non-consideration of Circular No.183/15/2022-GST dated 27.12.2022? Petitioner's Arguments: The petitioner argued that the ex-parte orders should be quashed and the matters remitted back for reconsideration. They claimed their inability to reply was due to bona fide reasons and unavoidable circumstances. They also contended that the impugned orders were flawed due to the non-consideration of the aforementioned Central Government Circular. Respondent's Arguments: The respondent supported the impugned order, arguing that the petitions lacked merit. They emphasized that the petitioner did not exercise due diligence by participating in the proceedings.
Sections Cited
GSTR-3B, GSTR-2A
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Before: SHRI K.V. SRINIVASAMURTHY,
Heard together (3 matters)
Read from the judgment's own cause title. This page is filed under one of them.
In these writ petitions, the petitioner seeks the following reliefs: "(a) Issue a writ in the nature of certiorari or any other writ/ to quash the impugned order bearing No.DCCT (Audit)-1.9/GST-Audit/2024-25 dated 30.11.2024 [Annexure-A] passed by the Respondent. (b) Grant such other order or direction as deemed fit in the facts and circumstances of the case in the interest of justice."
Heard the learned counsel for the petitioner and learned HCGP for the respondent in all the petitions and perused the material on record.
A perusal of the material on record will indicate that the petitioner filed Form GSTR-3B. On 21.08.2024, the respondent issued Form ASMT-10 notice, calling for explanation as to the difference/discrepancy between Form GSTR-3B and Form GSTR- 2A submitted by the petitioner. Pursuant to the same, the respondent issued show cause notice to the petitioner, who did not submit any reply to the same and consequently, the respondent NC: 2025:KHC:11664 proceeded to pass the impugned order at Annexure-A dated 30.11.2024, which is assailed in the present petitions.
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 matters be remitted back to the respondent for reconsideration 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 dated 27.12.2022. It is therefore submitted that the impugned order deserve to be quashed.
Per contra, learned HCGP for the respondent would support the impugned order and submit that there is no merit in the petitions and the same is liable to be dismissed, especially when the petitioner did not exercise his due diligence in participating in the impugned proceedings. NC: 2025:KHC:11664
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 order has 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 order and remit these matters back to the respondent for reconsideration afresh in accordance with law by issuing certain directions. In the result, I pass the following: ORDER (i) Writ Petitions are allowed; NC: 2025:KHC:11664 (ii) The impugned order passed by respondent at Annexure-A dated 30.11.2024 is hereby set aside; (iii) Matters are remitted back to the respondent for reconsideration afresh in accordance with law, bearing in mind the aforesaid Circular bearing dated 27.12.2022; (iv) The petitioner shall appear before the respondent on 21.04.2025 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 21.04.2025, 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 SMJ List No.: 1 Sl No.: 32
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.