M/S Ept Service Point vs. The State Of Karnataka - Karnataka High Court, 20 March 2025

Cause title — parties, addresses and appearances

- 1 - NC: 2025:KHC:11673 WP No. 4006 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.4006 OF 2025 (T-RES) BETWEEN: M/S. EPT SERVICE POINT, BY ITS PROPRIETOR, ELANGOVAN PUSHAPALATHA, HAVING BUSINESS AT GROUND FLOOR, 71/11, 18TH CROSS, 1ST BLOCK, RAJAJINAGAR, BENGALURU - 560 010. …PETITIONER (BY SRI. SRINIVASA K., ADVOCATE) AND: 1. THE STATE OF KARNATAKA, BY IS CHIEF SECRETARY, FINANCE DEPARTMENT, M.S. BUILDING BENGALURU - 560 001. 2. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, AUDIT 2.9, DGSTO-02, POINEER PLAZA, KENCHENAHALLI MAIN ROAD, RAJARAJESHWARINAGAR, Digitally signed by KAVYA R Location: High Court of Karnataka - 2 - NC: 2025:KHC:11673 WP No. 4006 of 2025 BENGALURU - 560 098. 3. JOINT COMMISSIONER OF COMMERCIAL TAXES, APPEALS-02, BMTC BUILDING, SHANTHINAGAR, DOUBLE ROAD, BENGALURU. …RESPONDENTS (BY SMT.JYOTHI M MARADI, HCGP) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 15-01-2025 IN APPEAL NO. AD290124011561J, BEARING REFERENCE NUMBER ZD290125048020V PASSED BY THE 3RD RESPONDENT VIDE ANNEXURE - E 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 - 3 - NC: 2025:KHC:11673 WP No. 4006 of 2025

ORAL ORDER In this petition, the petitioner has sought for the following relief: (a) Issue a writ of ceritoria in quashing the impugned order dated 15-01-2025 in Appeal No. AD290124011561J, bearing Reference number ZD290125048020V passed by the 3rd respondent vide., Annexure-E.

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 the second respondent issued a show-cause notices dated 07.06.2023 and 12.10.2023 for Tax periods July 2017 to March 2018 and April 2018 to March 2019 respectively. Since the petitioner did not submit his reply to the said show-cause notices, the second respondent proceeded to pass the impugned orders dated 31.07.2023 and 24.11.2023 under Section 73(9) of the CGST/KGST Act, 2017 for Tax periods July-2017 to March-2018 and April-2018 to March-2019 respectively confirming the total demand of Rs.5,60,858/- and Rs.2,42,627/- respectively including the tax, interest and penalty, pursuant to which the petitioner filed NC: 2025:KHC:11673 an appeal on 09.01.2024 which was dismissed as barred by limitation impugned order vide dated 15.01.2025 though an application for condonation of delay was filed. It is submitted that since the GST Appellate Tribunal has not been constituted as on today, the petitioner has no option but to approach this Court by way of the present petition inter alia contending that the inability and omission on the part of the petitioner to submit a reply to the pre-intimation notices and show-cause notices and contest the proceedings 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 show-cause notice and contest the proceedings.

Per contra, learned HCGP for the respondents submits that since the pre-intimation notice and show-cause notice were duly communicated electronically to the petitioner by uploading the same on GST portal as well as e-mail, 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. NC: 2025:KHC:11673

Though several contentions have been urged by both sides as regards to the petitioner not having received the pre-intimation notice and show-cause notice and his inability and omission to contest the proceedings, it is a matter of record and an undisputed fact that the petitioner did not submit his reply to the show-cause notice or pre-intimation notice nor did it contest the proceedings, which culminated in the impugned ex-parte order. So also the appeal filed by the petitioner before the third respondent has been dismissed as barred by limitation.

Under these circumstances, having regard to the specific assertion on the part of the petitioner that his inability and omission to submit replies 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 impugned orders dated 31.07.2023 and 24.11.2023 and remitting the matter back to the second respondent for reconsideration of the matter afresh in accordance with law to the stage of petitioner submitting reply to the impugned show-cause notice. NC: 2025:KHC:11673

In the result, I pass the following: ORDER

(i) The petition is hereby allowed.

(ii) The impugned orders dated 31.07.2023 and 24.11.2023 at Annexures-A and B passed by the second respondent under Section73(9) of the CGST/KGST Act, 2017 are hereby set aside.

(iii) The matter is remitted back to the second respondent for reconsideration afresh in accordance with law.

(iv) The petitioner is directed to appear before the second respondent on 15.04.2025 at 2:30 p.m. without awaiting further notice from the second respondent.

(v) It is made clear that in the event the petitioner does not appear before second respondent on 15.04.2025, the present order shall stand automatically revoked and impugned orders shall stand revived automatically without further orders or reference to the Bench. (S.R.KRISHNA KUMAR) JUDGE SMJ List No.: 1 Sl No.: 27