M/S Rajavaibhav Enterprises PVT Limited vs. The Deputy Commissioner Of Commercial Taxes (Audit)-5.5
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Cause title — parties, addresses and appearances
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 File No.DCCT/(A)- 5.5/Rajvaibha/order u/s 73 / Audit / No-27/2024-25 dated 08.08.2024 passed u/s 73(9) of the KGST / CGST Act, by the respondent vide Annexure – D in relation to the Audit period April 2019 to March 2020. b) Issue such other writ or orders as deemed fit in the circumstances of the case in the interest of justice and equity.”
Heard the learned counsel for the petitioner and the learned Additional Government Advocate for the respondent and perused the material on record.
A perusal of the material on record will indicate that the petitioner filed its return of turnovers for the tax period April 2019 to March 2020. The respondent initiated audit proceedings u/s. 65 of the Act and issued notice to the petitioner to file reply. The petitioner failed to reply to the said Notice and consequently, the respondent issued Form GST ADT-02 directing the petitioner to discharge the tax liability. Thereafter, on 30.05.2024, the respondent issued show-cause notice in Form GST DRC-01 as per NC: 2025:KHC:10744 Section 73(1) of KGST Act calling for explanation with regard to Audit findings 1 to 3 of the Audit Report. The Petitioner filed his reply dated 30.06.2024 to the aforesaid show-cause notice. Pursuant to the same, the respondent without considering the reply filed by the petitioner and not providing the petitioner sufficient opportunity of personal hearing u/s. 75(4) of the Act proceeded to pass the impugned order at Annexure – D dated 08.08.2024, which are assailed in the present petition.
Learned counsel for the petitioner submits that the petitioner had filed its reply to the show-cause notice dated 30.05.2024 and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned order at Annexure – D dated 08.08.2024 and the impugned order deserves to be quashed and the matter remitted back to the respondent for reconsideration of the matter afresh in accordance with law by providing an opportunity to the petitioner to submit reply to the show cause notice / produce necessary documents.
Per contra, learned Additional Government Advocate for respondent would support the impugned order and submit that NC: 2025:KHC:10744 there is no merit in the petition and that the same is liable to be dismissed, especially when the petitioner did not exercise his due diligence in participating in the impugned proceedings.
A perusal of the material on record including the impugned order will indicate that it is an undisputed fact that the petitioner filed its reply to the show-cause notice and the impugned order has been passed without granting an opportunity to the petitioner to produce necessary documents. Under these circumstances, in view of the respondent failing to provide an opportunity for the petitioner to provide a reasonable opportunity to produce necessary documents, 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 the matter back to the respondent for reconsideration afresh in accordance with law by issuing certain directions.
In the result, I pass the following: ORDER i) The petition is hereby allowed; NC: 2025:KHC:10744 ii) The impugned order passed by the respondent at Annexure – D dated 08.08.2024 is hereby set aside. iii) Matter is remitted back to the respondent for reconsideration afresh subject to payment of Rs.1,00,000/- with the respondent, within a period of four weeks from today. The said deposit would be subject to the final out come of the proceedings. iv) The petitioner shall appear before the respondent on 22.04.2025, 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 22.04.2025, the respondent shall afford reasonable and sufficient opportunity to the petitioner and hear him and proceed further in accordance with law. (S.R.KRISHNA KUMAR) JUDGE
SV List No.: 1 Sl No.: 35
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.