M/S K G N Constructions vs. The Deputy Commissioner Of Commercial Taxes
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Cause title — parties, addresses and appearances
ORAL ORDER In this petition, petitioner seeks the following reliefs: “A. Issue Writ of Certiorari or writ in the nature of Certiorari quashing Following orders:-
a. Order passed under Section 74(9) &(10) & 122 of KGST/CGST Act, 2017 dated 16.01.2023 bearing No.DCCT(Audit)-4.2/T.No.225/2022-23 passed by the Deputy Commissioner of Commercial Taxes (Audit)4.2, Bangalore for period July 2017 to March 2018 FY 2017-18 Annexure-B.
b. Order under Section 74 dated 11.03.2025 bearing Ref.No.ZD2990325029290J passed by the Deputy Commissioner of Commercial Taxes (Audit)4.2, Bangalore for period July 2017 to March 2018 FY 2017-18 Annexure- D. B. To issue any other Writ or direction or to grant such other relief or reliefs as deemed fit under the facts and circumstances of this case, including the cost.”
Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record.
A perusal of material on record will indicate that the 1st respondent issued a show-cause notice dated 13.12.2022 under Section 74 of the CGST/KGST Act, 2017. Since the petitioner did HC-KAR NC: 2025:KHC:54067 not submit his reply to the said show-cause notice, the 1st respondent proceeded to pass the impugned order dated 16.01.2023 under Section 74 of the KGST Act, 2017 confirming the total demand of Rs.32,87,659/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner could not submit replies/ documents to the show- cause notice dated 13.12.2022 and resultantly, could not contest the proceedings. Aggrieved by the said order, the petitioner having no option has approached this Court by way of the present petition interalia contending that the inability and omission on the part of the petitioner to submit a reply to the pre-intimation notice and show-cause notice 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. HC-KAR NC: 2025:KHC:54067
Per contra, learned AGA for the respondents submits that there is no merit in the petition and the same is liable to be dismissed.
Though several contentions have been urged by both sides, 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 16.01.2023 and remitting the matter back to the 1st respondent for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned show-cause notice dated 13.12.2022, subject to petitioner depositing 10% of the tax amount on or before 02.02.2026. 7. In the result, I pass the following: HC-KAR NC: 2025:KHC:54067 ORDER
(i) The petition is hereby allowed subject to petitioner depositing 10% of the tax amount on or before 02.02.2026. (ii) The impugned order dated 16.01.2023 passed by the 1st respondent under 74 of the KGST Act, 2017 at Annexure – B is hereby set aside.
(iii) The matter is remitted back to the 1st respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 13.12.2022. (iv) The petitioner is directed to appear before the 1st respondent on 02.02.2026 without awaiting further notice from the 1st respondent.
(v) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the first respondent who shall provide sufficient and reasonable opportunity to HC-KAR NC: 2025:KHC:54067 the petitioner and hear them and proceed further in accordance with law.
(vi) In the event, the Petitioner does not appear before the 1st respondent on 02.02.2026 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
MDS List No.: 2 Sl No.: 38
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.