Writ Petition No. 9102 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:12981 WP No. 9102 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 9102 OF 2025 (T-RES) BETWEEN: M/S.AKRUTHI TRADERS, A PARTNERSHIP FIRM, HAVING OFFICE AT NO. 130, SHOP NOS, 1,2,3, NEXT TO PARIVAR PALACE, NEAR DEVARACHIKKANAHALLI BUS STOP, BANGALORE - 560 076. REPRESENTED BY ITS PARTNER MRS. ASHA E, D/O. SRI. EASURAJA, AGED ABOUT 30 YEARS. (BY SMT. VANI H., ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, AUDIT-4.8, DGSTO-4, 5TH FLOOR, TTMC BUS DEPOT-15, KORAMANGALA, BENGALURU - 560 095 …PETITIONER 2. THE COMMERCIAL TAX OFFICER (AUDIT)4.2, DGSTO-4, TTMC BUILDING, 5TH FLOOR, BMTC BUS DEPOT, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560 095. 3. THE STATE OF KARNATAKA, DEPARTMENT OF FINANCE, BY ITS PRINCIPAL SECRETARY, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BANGALORE -560 001
Legal Reasoning
(BY SMT. JYOTHI M. MARADI, HCGP) …RESPONDENTS Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:12981 WP No. 9102 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF ISSUE A WRIT OF INDIA PRAYING TO CERTIORARI OR WRIT IN THE NATURE OF CERTIORARI TO QUASH THE ADJUDICATION ORDER BEARING FILE NO. JCCT/DGSTO-04/CTO(AUDIT)- 4.2/GST(73)/ADJUDICATION ORDER/2023-24 DATED 28.12.2023 PASSED UNDER SECTION 73(9)/74(9) OF THE KGST ACT BY THE SECOND RESPONDENT FOR THE FINANCIAL YEAR 2017-18 VIDE ANNEXURE-K AND THE SUMMARY OF ORDER BEARING REFERENCE NUMBER ISSUED BY THE SECOND ZD291223088503A DATED 28.12.2023 RESPONDENT FOR THE TAX PERIOD 2017-18 VIDE ANNEXURE-L 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 for the following reliefs:- “ (i) Issue a Writ of Certiorari or writ in the nature of certiorari to quash the adjudication order bearing File No.JCCT/DGSTO-04/CTO(Audit)-4.2/GST(73)/Adjudication Order/2023-24 dated: 28.12.2023 passed under Section 73(9)/74(9) of the KGST Act by the Second respondent for the financial year 2017-18 vide ANNEXURE-K and the summary of
Decision
order bearing reference Number ZD291223088503A dated: 28.12.2023 issued by the second respondent for the tax period 2017-18 vide Annexure-L; (ii) Issue a Writ of Certiorari or writ in the nature of certiorari to quash the Audit report bearing No.T.No.13/2023- 24 dated: 13.07.2023 issued by the first Respondent under Section 65(6) of the GST Act vide Annexure-G; - 3 - NC: 2025:KHC:12981 WP No. 9102 of 2025 (iii) Issue a Writ of Mandamus or a direction in the nature of mandamus directing the second respondent to adjudicate the excess input tax credit of Rs.8,09,477/- claimed in Form VAT 100 for the tax period February 2017 filed on 30.06.2017 vide ANNEXURE-A and refund or adjust the same against the transitional input tax credit allowable under Section 140 of the GST Act; (iv) Issue a writ of Mandamus or a direction in the nature of mandamus directing the second respondent to afford reasonable opportunity to petitioner to file reply to the show cause notice bearing reference No.ACCT/Audit- 4.8/2023-24 dated; 25.09.2023 vide ANNEXURE-J and consider the same in accordance with law and (v) To pass such other orders or directions as deemed fit by this Hon’ble Court in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned HCGP for the respondents and perused the material on record. 3. Learned counsel for the petitioner submits that pursuant to the impugned proceedings initiated by the 2nd respondent vide show cause notice at Annexure-J dated 25.09.2023, the petitioner did not submit its reply to the same, which resulted in the 2nd respondent proceeding to pass the impugned adjudication order and summary order at Annexures-K and L both dated 28.12.2023, which was an ex-parte order without giving / providing sufficient - 4 - NC: 2025:KHC:12981 WP No. 9102 of 2025 opportunity to the petitioner to contest the said proceedings. It is also the contention of the petitioner that necessary directions are to be issued to the 2nd respondent to adjudicate the excess input tax credit of Rs.8,09,477/- claimed in Form VAT 100 for the tax period February 2017 filed on 30.06.2017 vide Annexure-A and refund / adjust the same against the transitional input tax credit eligible under Section 140 of the GST Act and as such, the impugned adjudication order deserves to be set aside and the matter be remanded back to the 2nd respondent from the stage of the petitioner submitting its reply to the show cause notice and proceed further in accordance with law. 4. Per contra, learned HCGP for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed. 5. A perusal of the material on record will indicate that it is an undisputed fact that the petitioner did not submit reply to the show cause notice and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause, which resulted in the 2nd respondent proceeding to pass the impugned adjudication order without providing any opportunity to - 5 - NC: 2025:KHC:12981 WP No. 9102 of 2025 the petitioner. Under these circumstances, 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 adjudication order dated 28.12.2023 and remitting the matter back to the 2nd respondent for reconsideration of the matter afresh in accordance with law from the stage of the petitioner submitting reply to the impugned show cause notice dated 25.09.2023. 6. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned adjudication order and summary order at Annexures- K and L both dated 28.12.2023 are hereby set aside. (iii) The matter is remitted back to the 2nd respondent from the stage of the petitioner submitting reply to the show cause notice at Annexure-J dated 25.09.2023. (iv) Liberty is reserved in favour of the petitioner to file additional pleadings, documents etc., which shall be considered by the 2ndrespondent and proceed further in accordance with law. (v) In addition to passing the appropriate orders in accordance with law, the 2nd respondent shall also consider the - 6 - NC: 2025:KHC:12981 WP No. 9102 of 2025 claim of the petitioner to adjudicate prayer (iii) in accordance with law and pass appropriate orders. (vi) Petitioner is directed to appear before the 2nd respondent on 28.04.2025 without awaiting further notice. Sd/- (S.R.KRISHNA KUMAR) JUDGE Srl. List No.: 2 Sl No.: 31