Writ Petition No. 13172 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:18012 WP No. 13172 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.13172 OF 2025 (T-RES) BETWEEN: M/S G CORP POWER PRIVATE LIMITED, A PRIVATE LIMITED COMPANY UNDER THE COMPANIES ACT, 2013 HAVING REGISTERED OFFICE AT NO.81/37, THE HULKUL, LAVELLE ROAD, SHANTHINAGAR, OPP. DAINESE SHOE ROOM, ASHOK NAGAR, BENGALURU – 560 001. REPRESENTED BY ITS DIRECTOR SRI ASAGODU SHANOBHAG JAYASIMHA, SON OF SRI A S PRAHLADA RAO, AGED 72 YEARS. (BY SRI. SHREEHARI, ADVOCATE) AND: …PETITIONER
Legal Reasoning
Digitally signed by CHANDANA B M Location: High Court of Karnataka 1. DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-1.7, DGSTO-1, BENGALURU, THE PROPER OFFICER UNDER THE CENTRAL/STATE GOODS AND SERVICE TAX ACT, 2017 3RD FLOOR, TTMC, BMTC BUILDING, YESHWANTHPUR, BENGALURU – 560 022. 2. COMMISSIONER OF COMMERCIAL TAXES (KARNATAKA), BENGALURU VANIJYA TERIGE KARYALAYA, A BLOCK, 80FT ROAD, NEAR K H B GAMES VILLAGE, KORAMANGALA, BENGALURU – 570 047.
Legal Reasoning
(BY SRI.K. HEMAKUMAR, AGA) …RESPONDENTS - 2 - NC: 2025:KHC:18012 WP No. 13172 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER SUITABLE WRIT QUASHING THE INTIMATION U/S 73(5) OF THE KARNATAKA GOODS AND SERVICE TAX ACT, 2017, DATED 27.10.2022 BEARING NO. DCCT(A)- 1.4/GST(ADT)-07/2021-22 AND T.NO. 325/22-23 ISSUED IN FORM GST DRC 01A ALONG WITH ITS SUMMARY ISSUED BY THE RESPONDENT NO. 1 AND ENCLOSED AS ANNEXURE-D AND 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, the petitioner seeks the following reliefs: “a. Issue a writ of certiorari or any other suitable writ quashing the intimation u/s 73(5) of the Karnataka Goods and Service Tax Act, 2017, dated 27/10/2022 bearing No.DCCT(A)-1.4/GST(Adt)-07/2021-22 and T.No.325/22-23 issued in Form GST DRC 01A along with its summary issued by the Respondent No. 1 and enclosed as Annexure D. b. Issue a writ of certiorari or any other suitable writ quashing the show cause notice u/s 73(9) of the Karnataka Goods and Service Tax Act, 2017, dated 30/06/2023 bearing No. DCCT(A)-1.4/GST(Adj)- 13/2023-24 and T.No. 100/23-24 along with the summary form in DRC 01 issued by the Respondent No. 1 and enclosed as Annexure E. - 3 - NC: 2025:KHC:18012 WP No. 13172 of 2025 c. Issue a writ of certiorari or any other suitable writ quashing the adjudication order u/s 73(9) of the Karnataka Goods and Service Tax Act, 2017, dated 10/08/2023 bearing No. DCCT/AUDIT-1.7/GST(Adj)- 13/2023-24 and T.No.207/23-24 along with the summary in form GST DRC 07 issued by the Respondent No. 1 and enclosed as Annexure F. d. Grant such other reliefs as this Hon'ble Court deems fit in this matter including but not limited to costs of this petition.” 2. Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record. 3. A perusal of material on record will indicate that the 1st respondent issued a Form GST DRC-01A dated 27.10.2022 to the petitioner, who did not issue any reply / response to the same. Subsequently, the 1st respondent issued a show-cause notice in Form GST DRC-1 dated 30.06.2023. Since the petitioner did not submit its reply to the said show-cause notice also, the 1st respondent proceeded to pass the impugned orders both dated 10.08.2023 under Section 73(9) of the CGST/KGST Act, 2017 confirming the total demand of Rs.39,49,324/- including the tax, interest and penalty, which is assailed in the present petition. - 4 - NC: 2025:KHC:18012 WP No. 13172 of 2025 4. Learned counsel for the petitioner submits that since the petitioner could not discharge the professional fees of the Chartered Accountant, the said Chartered Accountant did not file any reply to the said show-cause notice, which culminated in the impugned ex-parte order. The learned counsel for the petitioner submits 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 bonafide 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 reply to the show-cause notice and contest the proceedings. 5. Per contra, learned AGA for the respondents submits that 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 in support of their respective claims, it is a matter of record and undisputed fact that though the petitioner having been served with Show Cause Notice in Form GST DRC-1, his inability and - 5 - NC: 2025:KHC:18012 WP No. 13172 of 2025 omission to submit a reply and contest the proceedings was due to bonafide reasons, unavoidable circumstance and sufficient cause, 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 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 orders both dated 10.08.2023 and remit the matter back to the 1st 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) The impugned orders both dated 10.08.2023 passed by the 1st respondent under Section 73(9) of the CGST/LGST Act, 2017 at Annexure- F are hereby set aside, - 6 - NC: 2025:KHC:18012 WP No. 13172 of 2025 subject to the petitioner depositing 10% of the tax amount with respondent No.1, which would be subject to final outcome of the proceedings. (iii) The matter is remitted back to respondent No.1 for reconsideration afresh, from the stage of petitioner submitting its reply to the show-cause notice dated 30.06.2023 at Annexure E and proceed in accordance with law, bearing in mind the pleadings and in accordance with law. (iv) Liberty is reserved in favour of the petitioner to produce additional pleadings and documents etc., which shall be considered by the respondent, in accordance with law. SV List No.: 5 Sl No.: 2 Sd/- (S.R.KRISHNA KUMAR) JUDGE