M/S. Nav Durga Constructions vs. The Asst. Commissioner Of Commercial Taxes

Learned counsel for the petitioner would submit that proceedings under Section 73 of the Karnataka Goods and Services Tax Act, 2017 (for short ‘2017 Act’) was initiated by issuing show-cause notice dated 18.12.2023. It is his submission that the said show-cause notice was not served on the petitioner and submits that the petitioner had no opportunity to participate in the proceedings, which resulted in passing of the impugned order at Annexure-A dated 16.02.2024 under Section 73 of 2017 Act. Learned counsel would submit that the petitioner was not aware of the initiation of the proceedings as well as passing of the order, which came to the knowledge of the petitioner only in the month of November-2024, when amount was deposited from his NC: 2025:KHC:8667 Account. Further, he submits that Notices sent to the e-mail address of the petitioner was stored in spam folder of the e-mail account. Therefore, it had not come to the notice of the petitioner. Learned counsel would submit that the petitioner be given an opportunity to file objection material and participate in the proceedings. Further, he submits that the petitioner is also ready to pre-deposit certain amount.

Learned AGA Sri. K.Hemakumar for the respondent would submit that the petitioner has failed to participate in the proceedings even after issuance of notice to the petitioner. He further submits that a separate/reminder notice on 09.02.2024 was also sent to e-mail of the petitioner fixing the date of personal hearing as 12.02.2024. But the petitioner failed to participate in the proceedings and also failed to appear before Authorities on personal hearing date. Further, learned AGA points out that impugned order at Annexure-A was passed in the month of February-2024 and the petitioner is before this Court nearly after one year. Therefore, he submits that there is no bonafide in the writ petition. Hence, he prays for dismissal of the writ petition. NC: 2025:KHC:8667

Having heard the learned counsel for the parties and on perusal of the writ petition papers, I am of the opinion that the petitioner ought to be given an opportunity to file objection material and participate in the proceedings but with certain conditions. Admittedly, the proceedings was initiated by issuance of show-cause notice dated 18.12.2023 (Annexure-D). It is the main contention of the petitioner that Notices were not served and notices sent to e-mail address of the petitioner was stored in the spam folder, which is placed on record as Annexure-E, which would indicate that the Notices were in the spam folder of the petitioner. Admittedly, the impugned order is an ex-parte order. The petitioner was not in a position to participate in the proceedings for the reasons stated above.

The petitioner would state that passing of the impugned order came to his knowledge only in the month of November-2024, when amount was deposited from his Account. In the facts and circumstances of the case and in the interest of justice, his submission is accepted and I am of the view that the petitioner is to be given an opportunity to participate in the proceedings. Hence, the following: NC: 2025:KHC:8667 ORDER (a) Impugned order at Annexure-A bearing No.ACCT(P)/LGSTO-025/DRC-07/2AvsR3B/2023-24 dated 16.02.2024 passed under Section 73 of 2017 Act is set aside; (b) Three weeks time granted to the petitioner to file objection to the show-cause notice dated 18.12.2023 (Annexure-D). (c) The petitioner shall appear before respondent on 21.03.2025 and shall deposit 25% of the total tax liability determined under Annexure-A i.e., Rs.4,05,595/-. (d) With the above, writ petition stands disposed off. (S.G.PANDIT) JUDGE