M/S Inter Globe Trading vs. The Commissioner Of Commercial Tax - Karnataka High Court, 06 June 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:19171 WP No. 16018 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 16018 OF 2025 (T-RES) BETWEEN: M/S INTER GLOBE TRADING A PROPRIETARY CONCERN OFF/AT 5-5-279/60, THE EMPIRE, 1ST FLOOR, M.G. ROAD, MANGALORE, DAKSHINA KANNADA-575 003, GSTIN-29ECHPM7024MIZI REP BY ITS PROPRIETOR. MR. MOHAMMAD HASANABBA MADANTHYAR. …PETITIONER (BY SRI. HEMANTH N.P.,ADVOCATE A/W SRI. VIJYA KUMAR A, ADVOCATE) AND: 1. THE COMMISSIONER OF COMMERCIAL TAX VANIJYA THERIGE BHAVANA KALIDASA MARGA GANDHINAGARA BANGALORE-560009. 2. JOINT COMMISSIONER OF COMMERCIAL TAX APPEALS VANIJYA THERIGE BHAVANA, Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:19171 WP No. 16018 of 2025 MAIDAN ROAD, MANGALORE-575 001. 3. THE COMMERCIAL TAX OFFICER (AUDIT)-5, D.G.S.T.O., VANIJYA THERIGE BHAVANA, MAIDAN ROAD, MANGALORE-575 001. …RESPONDENTS (BY SRI.HEMA KUMAR., AGA A/W SMT. JYOTHI M.M., HCGP ) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUITON OF INDIA PRAYING TO-DIRECT THE R- TO CONDONE A DELAY OF 78 DAYS IN FILING THE APPEAL VIDE ANNX-G BEFORE THE SAID AUTHORITY, THEREBY TO HEAR THE APPEAL ON MERITS AND TO DISPOSE OF THE SAID APPEAL EXPEDITIOUSLY; DIRECT THE R-3 TO REFUND THE EXCESS AMOUNT RECOVERED OVER AND ABOVE 10 PERCENT (PRE-DEPOSIT) OF THE IMPUGNED TAX DEMAND PURSUANT TO ANNX-D AND D1 DATED 26.11.2025. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE B M SHYAM PRASAD - 3 - HC-KAR NC: 2025:KHC:19171 WP No. 16018 of 2025

ORAL ORDER The petitioner inter alia is aggrieved by the second respondent's Endorsement dated 27.05.2025 [Annexure-J], and the second respondent has issued this Endorsement informing the petitioner that its appeal under Section 73[9] of the Karnataka Goods and Services Tax Act, 2017/Central Goods and Services Tax Act, 2017 [for short, 'the Act'] as against the Order-in-Original is belated by 78 days and therefore cannot be entertained. The petitioner’s proprietor does not contest that the appeal is belated, but he asserts that he was hospitalized during the month of March 2025, and as such, he could not file an appeal.

In fact, the learned counsel for the petitioner asserts bona fide to bolster the petitioner’s case that he could not participate in the original proceedings under Section 73 of the Act because of health reasons. Mr. K Hemakumar, the learned Additional HC-KAR NC: 2025:KHC:19171 Government Advocate, who is supported by Ms. Jyoti M M, the learned High Court Government Pleader, on behalf of the respondents, are heard in the light of the petition's specific case that he, for bonafide reasons, could not participate in the original proceedings or avail the appellate remedy because of his hospitalization.

Sri K Hemakumar cannot dispute that this Court has entertained writ petition in similar circumstances, when bona fides are established, restoring the original proceedings. In fact, when queried, Sri K Hemakumar submits that interference has been because there would be no merger with the Order-in-original as the appeal is not considered on merits. In the afore circumstances, this Court must interfere restoring the original proceedings for re- adjudication but on terms observing that the petitioner must forfeit the opportunity if it does not avail this opportunity on the terms that are provided HC-KAR NC: 2025:KHC:19171 as this Court is taking a liberal view in the circumstances. In the light of the afore, the following: ORDER [a] The petition is allowed in part, and the third respondent's Order-in-Original dated 26.11.2024 [Annexure-D] is quashed restoring the proceedings for reconsideration stipulating that the petitioner’s representative, with no further notice or waiting for a certified copy of this order, shall appear before the third respondent on 04.07.2025 and file reply and all documents within such further time as allowed by the third respondent. [c] If for any reason, the petitioner does not appear on 04.07.2025 before the third respondent, and the third respondent is not persuaded to accept the cause that may be shown, the petitioner shall forfeit the opportunity. HC-KAR NC: 2025:KHC:19171 [d] It is needless to observe that all questions [excluding the question of limitation] are left open for due consideration. (B M SHYAM PRASAD) JUDGE

AN/-