Sri Lakshme Gowda Manu vs. Union Of INDIA - Karnataka High Court, 27 November 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:49794 WP No. 17154 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.17154 OF 2025 (T-RES) BETWEEN: SRI LAKSHME GOWDA MANU S/O BORAGOWDA, AGED ABOUT 35 YEARS. TRADE NAME: M/S. ANU CONSTRUCTIONS NO.3074, 2ND MAIN, 2ND FLOOR RAJARAJESHWARI NILAYA WATER TANK ROAD, RPC LAYOUT, VIJAYANAGAR BENGALURU – 560 085. …PETITIONER (BY SMT. NEHA ALUR FOR SRI. ATUL K. ALUR, ADVOCATES) AND: 1. UNION OF INDIA THROUGH ITS SECRETARY (REVENUE) MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI – 110 001. 2. THE ADDITIONAL COMMISSIONER OF CENTRAL TAX, BANGALORE WEST COMMISSIONERATE, BMTC BUILDING 1ST FLOOR, BANASHANKARI, KANAKAPURA ROAD, BENGALURU – 560 070. …RESPONDENTS (BY SRI. JEEVAN J.NEERALGI, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE OIA NO.182/2024-25, Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:49794 WP No. 17154 of 2025 DATED 17/01/2025, ISSUED BY RESP-2 FOR THE ASSESSMENT YEARS JULY 2017 TO MARCH 2020 AT ANNX-G, INSOFAR AS THE PETITIONER IS CONCERNED AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks the following reliefs:

“(a) Issue writ of certiorari or writ in the nature of certiorari quashing the ΟΙΑ Νο:182/2024-25 dated 17/1/2025 issued by resp-2 for the assessment years July- 2017 to March-2020 at Annexure-G, insofar as the petitioner is concerned.

(b) Issue writ of certiorari or writ in the nature of certiorari quashing the demand DRC-07 dated 29/1/2025 issued by resp-2 bearing Ref No:AD2901251153720, for the assessment years July 2017 to March- 2018 and additional demand for subsequent period Annexure- H, insofar as the petitioner is concerned.

(c) Issue writ of mandamus or writ in the nature of mandamus directing the resp-2 to delete the turnover under the KVAT Act, for the period 2017-18 as per Form-240 as per Annexure- F.

(d) This Hon'ble Court may be pleased to issue writ of mandamus or a direction in the nature of writ of mandamus HC-KAR NC: 2025:KHC:49794 directing the respondent-2 authority to consider the reply filed by the petitioner.

(e) This Hon'ble High Court may be pleased to issue such other writ or writs or directions in the nature of a writ as this Hon'ble High Court may deem it fit to grant in the facts and circumstances of petitioner's case.”

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

A perusal of material on record will indicate that the pursuant to the audit report dated 02.05.2022, petitioner filed his reply dated 10.05.2022. Subsequently, the respondents issued an intimation dated 16.05.2023 regarding tax liability and thereafter issued Show Cause Notice dated 07.07.2023 under Section 74(1) of the CGST/KGST Act, 2017. Since the petitioner did not submit his reply to the said show-cause notice, the 2nd respondent proceeded to pass the impugned order dated 17.01.2025 under Section 74 of the KGST Act, 2017 confirming the total demand of Rs.3,28,09,174/- including the tax, interest and penalty.

Learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause HC-KAR NC: 2025:KHC:49794 he could not submit replies / documents to the show-cause notice dated 07.07.2023 and resultantly, could not contest the proceedings 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 counsel 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 order dated 17.01.2025 and remitting the matter back to the respondents for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned show- cause notice dated 07.07.2023. HC-KAR NC: 2025:KHC:49794

In the result, I pass the following: ORDER

(i) The petition is hereby allowed.

(ii) The impugned order dated 17.01.2025 passed by the 2nd respondent under 74 of the KGST Act, 2017 at Annexure – G is hereby set aside.

(iii) The matter is remitted back to the respondents for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 07.07.2023. (iv) Liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the respondents, who shall provide sufficient and reasonable opportunity to the petitioner and hear them and proceed further in accordance with law. (S.R.KRISHNA KUMAR) JUDGE

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