Writ Petition No. 12762 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:17636 WP No. 12762 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 12762 OF 2025 (T-RES) BETWEEN: M/S. TWO TWENTY SOFTWARE TECHNOLOGIES, 3RD FLOOR, SY NO-5/3, VARTHUR MAIN ROAD, NEAR KUNDALAHALLI GATE, OPP. SKR KALYANA MANTAPA, BENGALURU- 560 066. REP. BY ITS SOLE PROPRIETOR. MR. D. H. A. SANGAMESHWARI, AGED ABOUT 44 YEARS, S/O. MR. HASSHAMT ALI SANGAMESHWRI, RESIDING AT NO. B4/402, PRINCETOWN ROYAL, NIBM-CORINTHAIN CLUB ROAD, UNDRI, NEAR PALACE ORCHARD, PUNE CITY, NIBM, MAHARASHTRA-411 048. (BY SMT. LAKSHMI MENON, ADVOCATE) AND: …PETITIONER
Legal Reasoning
Digitally signed by NANDINI R Location: HIGH COURT OF KARNATAKA 1. 2. 3. 4. STATE OF KARNATAKA, THROUGH THE PRINCIPAL SECRETARY, FINANCE DEPARTMENT, VIDHANA SOUDHA, BENGALURU - 560 001. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, #58, 2ND FLOOR, HAL 2ND STAGE, DEFENCE COLONY, 100FT ROAD, INDIRANAGAR, BENGALURU - 560 038. KOTAK MAHINDRA BANK, 75/2, WHITEFIELD MAIN ROAD, GIDDENS LAYOUT, WHITEFIELD, BANGALORE- 560 066. REP. BY ITS MANAGER. KOTAK MAHINDRA BANK, GROUND FLOOR, PLOT 6, SURVEY 1 AND 2, TMR TOWER, - 2 - NC: 2025:KHC:17636 WP No. 12762 of 2025 REP. BY ITS MANAGER THUBARAHALLI, BANGALORE-560 066.
Legal Reasoning
(BY SMT. JYOTI M MARADI HCGP FOR R1 TO R2) …RESPONDENTS THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO SET ASIDE AND QUASH THE IMPUGNED ORDER-IN-ORIGINAL PASSED BY R-2 UNDER SECTION 73 OF THE KGST AND CGST ACT, 2017, ORDER DATED 27/04/2024, FOR Y 2018- 19 (ANNEXURE-F) ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, 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: "Wherefore, in light of the above, the Petitioner humbly prays that this Hon'ble Court may be pleased to: a) To issue a writ of Certiorari or order or direction in the nature of Certiorari to set aside and quash the Impugned Order-in-Original passed by Respondent no. 2 under section 73 of the KGST and CGST Act, 2017, order dated 27.04.2024, for FY 2018-19 (Annexure - F); b) Issue Writ of Certiorari or order or direction in the nature of certiorari to set aside and quash the summary Impugned Order issued by Respondent no.2 dated 27.04.2024 in Form GST DRC-07 bearing no ACCT/LGSTO-36/DRC-07/2024-25 for the 2018-19 (Annexure - F1); and c) Grant any other orders that this Hon'ble Court deems fit and proper in the interest of justice. - 3 - NC: 2025:KHC:17636 WP No. 12762 of 2025 2. Heard learned counsel for the petitioner and learned HCGP for the respondents and perused the material on record. 3. A perusal of material on record will indicate that pursuant to Form GST ASMT-10 dated 29.11.2023, the second respondent issued a Form GST DRC-01A dated 01.12.2024 to the petitioner, who did not issue any reply/response to the same. Subsequently, the second respondent issued a show-cause notice in Form GST DRC-1 dated 31.01.2024. Since the petitioner did not submit his reply to the said show-cause notice also, the second respondent proceeded to pass the impugned order dated 27.04.2024 under Section 73 of the CGST/KGST Act, 2017 confirming the total demand of Rs.17,01,869/- including the tax, interest and penalty which is assailed in the present petition. 4. Learned counsel for the petitioner submits that neither Form GST ASMT-10 nor the show-cause notice in Form GST DRC-01 were uploaded in the portal or served upon the petitioner and it was not aware of the said proceedings. So also, physical copies of the aforesaid notices were not communicated to the petitioner and consequently, it was not in a position to submit a - 4 - NC: 2025:KHC:17636 WP No. 12762 of 2025 reply to the same or contest the proceedings, which culminated in the impugned ex-parte order. The counsel for the petitioner has filed the present petition inter alia contending that the inability and omission on the part of the petitioner to submit a reply to the show- cause notice and contest the proceedings was due to bona-fide 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. 5. Per contra, learned HCGP for the respondents No.1 and 2 submits that since the show-cause notice were duly communicated electronically to the petitioner by sending an e-mail to the petitioner and hence, the petitioner cannot complain that he was not aware of impugned proceedings and as such, there is no merit in the petition and the same is liable to be dismissed. 6. Though several contentions have been urged by both sides as regards to the petitioner not having received the Form GST ASMT-10 notice and show-cause notice and his inability and omission to contest the proceedings, is a matter on record and an undisputed fact that the petitioner did not submit his reply to the - 5 - NC: 2025:KHC:17636 WP No. 12762 of 2025 show-cause notice nor contested the proceedings, which culminated in the impugned ex-parte order. 7. Under these circumstances, 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 bona fide 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 27.04.2024 and remitting the matter back to the second respondent for reconsideration of the matter afresh in accordance with law to the stage of petitioner submitting reply to the impugned show-cause notice. 8.
Decision
In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned Order in Original passed by respondent No.2 dated 27.04.2024 - Annexure-F and the impugned Summary Order issued by respondent No.2 dated 27.04.2024 -Annexure-F1 are hereby set aside. - 6 - NC: 2025:KHC:17636 WP No. 12762 of 2025 (iii) Matter is remitted back to respondent No.2 for reconsideration afresh in accordance with law. (iv) Petitioner undertakes to appear before respondent No.2 on 19.05.2025 without awaiting for notice from respondent No.2. (v) It is made clear that in the event the petitioner does not appear before respondent No.2 on 19.05.2025, the present order shall stand automatically revoked and present petition shall revive without any further orders and without any reference to the Bench. (vi) Liberty is reserved in favour of the petitioner to file additional pleadings, documents, etc., which shall be considered by respondent No.2 who shall provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE tsn* List No.: 1 Sl No.: 19