M/S Shanthi Sagar Fast Food vs. State Of Karnataka

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WP/21772/2025HC KarnatakaGSTCNR KAHC01047197202523 July 2025Bench: SURAJ GOVINDARAJ6 pages
For Petitioner: SRI. ATUL KRISHNA RAO ALUR., ADVOCATEFor Respondent: SMT. JYOTHI.M.MARADI, HCGP FOR RESPONDNETS

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:28050 WP No. 21772 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 21772 OF 2025 (T-RES) BETWEEN: M/S SHANTHI SAGAR FAST FOOD 32A, NEW BEL ROAD, DEVASANDRA, BENGALURU - 560 094. (REPRESENTED BY PARTNER NARASIMHA. N) …PETITIONER (BY SRI. ATUL KRISHNA RAO ALUR.,ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF FINANCE. GOVERNMENT OF KARNATAKA, AMBEDKAR VEEDHI, BENGALURU - 560 001. 2. THE JOINT COMMISSIONER OF COMMERCIAL TAX (APPEALS)-9, TTMC, BMTC BUILDING, VIVEKNAGAR POST, KORAMANGALA, BENGALURU- 560 095 3. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-150, NO. 80, 2ND FLOOR, SAMAYA TOWERS, KODIGEHALLI MAIN ROAD, TATANAGAR, BENGALURU - 560 092. …RESPONDENTS (BY SMT. JYOTHI.M.MARADI, HCGP FOR RESPONDNETS) Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:28050 WP No. 21772 of 2025 THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-(A) QUASHING THE ORDER OF PASSED BY THE RESP-2 BEARING REFERENCE NO ZD2907250260711 DATED 07/07/2025, PASSED U/S 107F THE CGST/KGST ACT AT ANNEXURE-G ISSUED BY RESPONDENT-2 FOR THE PERIOD 2020-21 IN SO FAR AS THE PETITIONER IS CONCERNED.(B) QUASHING THE ADJUDICATION

ORDER PASSED UNDER SECTION 73(9) OF THE KGST/CGST ACT, DATED 22/11/2024, BEARING NO. ACCT/LGSTO-150/ASSM- 6234-347/2023-24/DRC-07(434)/2024-25/189 AT ANNEXURE- C ISSUED BY RESPONDENT-3 FOR THE PERIOD 2020-21 IN SO FAR AS THE PETITIONER IS CONCERNED.(C) QUASHING THE DEMAND IN BEARING DATED 22/11/2024, REFERENCE NO. DRC-07, ZD291124111149M AT ANNEXURE-D, ISSUED BY RESPONDENT-3 FOR THE PERIOD 2020-21 IN SO FAR AS THE PETITIONER IS CONCERNED.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

ORAL ORDER

1.

The petitioner is before this Court seeking for the following reliefs; a. Issue Writ in the nature of certiorari quashing the Order of passed by the resp-2 bearing reference No ZD2907250260711 dated 07/07/2025, passed u/s 107f the CGST/KGST Act at ANNEXURE-G, issued by Respondent-2 for the period 2020-21 in so far as the petitioner is concerned.

b. Issue Writ in the nature of certiorari quashing the adjudication order passed under section 73(9) of the KGST/CGST Act, dated: 22/11/2024, bearing No: ACCT/LGSTO-150/ASSM-6234-347/2023- 24/DRC-07(434)/2024-25/189 at ANNEXURE-C HC-KAR NC: 2025:KHC:28050 issued by Respondent-3 for the period 2020-21 in so far as the petitioner is concerned.

c. Issue Writ in the nature of certiorari quashing the demand in DRC-07, dated: 22/11/2024, bearing reference no: ZD291124111149M at ANNEXURE-D, issued by Respondent-3 for the period 2020-21 in so far as the petitioner is concerned.

d. Issue Writ in the nature of certiorari quashing the adjudication order passed under section 73(9) of the KGST/CGST Act, dated: 18/01/2024, bearing No: ACCT/LGSTO-150/ASSN-14467- 1052/2024- 25/DRC-07(597)/2024-25/352 at ANNEXURE-E, issued by Respondent-3 for the period 2020-21 in so far as the petitioner is concerned.

e. Issue Writ in the nature of certiorari quashing the demand in DRC-07, dated: 18/01/2025, bearing reference no: ZD2901250686354 at ANNEXURE-F, issued by Respondent-3 for the period 2020-21 in so far as the petitioner is concerned.

f. Issue Writ of Mandamus or writ in the nature of Mandamus directing the Respondent No.2 to admit

the appeal and to pass the orders on merits.

g. Issue writ of Mandamus or writ in the nature of Mandamus directing the Respondent No.3 to condone the delay in filing the appeal petitioner for the assessment period 2020-21 and decide the case on merits.

h. Issue any other writ or direction that may be deemed fit in the facts and circumstances of the instant case in the interests of justice. Including the cost of The Writ Petition.

2.

The grievance of the petitioner is that the adjudication order dated 18.01.2024 at Annexure-E HC-KAR NC: 2025:KHC:28050 is an ex-parte order inasmuch as no notice has been issued to the petitioner before such an order has been passed.

3.

His further submission is that on an appeal having been filed before respondent No.3, respondent No.3 also dismissed the appeal without affording an opportunity of hearing to the petitioner which resulted in the order under Section 107f at Annexure-G dated 7.7.2025. 4. A perusal of the order at Annexure-E indeed indicates that the same is a ex-parte order and as such the petitioner apparently has been deprived of placing his say on record before the course of adjudication. The reason for non-appearance is only as regards the notice not having been issued, which is opposed by learned HCGP contending that notice had been issued as also opportunity of personal hearing had been furnished. HC-KAR NC: 2025:KHC:28050

5.

Be that as it may, taking into consideration that the petitioner thereafter had filed an appeal and has placed the relevant records in the appeal which could not be considered, since the Appellate Authority did not have the power to condone the delay. I am of the opinion that, an opportunity would have to be provided to the petitioner by putting the petitioner to terms. As such, I pass the following; ORDER i. The writ petition is allowed. ii. The adjudication order dated: 18.01.2024, bearing No:ACCT/LGSTO-150/ASSN-14467- 1052/2024-25/DRC-07(597)/2024-25/352 issued by respondent No.3 at Annexure-E is set aside. iii. Consequently, the Order of passed by respondent No.2 bearing reference No.ZD2907250260711 dated 07.07.2025 at Annexure-G, the adjudication order dated: 22.11.2024 bearing No:ACCT/LGSTO- HC-KAR NC: 2025:KHC:28050 150/ASSM-6234-347/2023-24/DRC- 07(434)/2024-25/189 issued by respondent No.3 at Annexure-C, demand in DRC-07, dated: 22.11.2024 bearing reference No: ZD291124111149M issued by respondent No.3 at Annexure-D and demand in DRC-07 dated:18.01.2025 bearing reference No:ZD2901250686354 issued by respondent No.3 at Annexure-F are hereby set aside. iv. The matter is remanded to the Adjudicating Authority for fresh consideration by permitting the petitioner to file his reply to show-cause notice as also submit all and every document with petitioner intends to rely upon, which shall be so submitted on or before 21.8.2025. v. The petitioner shall also make payment for a sum of Rs.50,000/- to the Karnataka State Legal Service Authority. (SURAJ GOVINDARAJ) JUDGE SR/List No.: 1 Sl No.: 100

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