(BY SRI. SKANDA KUMAR, ADVOCATE) v. CHAVAN, ADVOCATE)
Case at a glance
Outcome
Allowed
The petition is hereby allowed
Provisions considered
- Companies Act, 2013
- Constitution of India arts. 226, 227
Key paragraphs
- Para 77. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned order at Annexure – D dated
Judgment
(BY SRI. SKANDA KUMAR, ADVOCATE) AND:
UNION OF INDIA MINISTRY OF CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC) OFFICE AT CENTRAL REVENUES BUILDING, I.P. ESTATE, NEW DELHI – 110 109. B M Location: High Court of Karnataka
ASSISTANT COMMISSIONER OF CENTRAL TAX, SOUTH DIVISION-6 OFFICE AT, 2ND FLOOR, BMTC BUILDING, KANAKAPURA ROAD, BANASHANKARI, BENGALURU-560 010. (BY SRI. ARAVIND V. CHAVAN, ADVOCATE) …RESPONDENTS - 2 - NC: 2025:KHC:54642 WP No. 38312 of 2025 HC-KAR THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER PASSED BY R-2 ASSISTANT COMMISSIONER OF CENTRAL TAX, AT ANNX-D VIDE ORDER IN ORIGINAL NO.82/2024 DATED 16.08.2024. 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, the petitioner seeks following reliefs:
(a) Allow the writ petition on costs. (b) Issue a writ of certiorari by quashing the order passed by Respondent No.2, Assistant Commissioner of Central Tax, at ‘Annexure-B’ vide ORDER IN ORIGINAL No.82/2024 dated 16.08.2024. (c) Any other relief/s as deemed fit to be granted to the petitioner by this Hon’ble Court in the circumstances of the case, in the interest of justice and equity.
2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
A perusal of material on record will indicate that the 2nd respondent issued a show-cause notice dated 22.05.2024 under Section 74(1) of the CGST/KGST Act, 2017. Since the petitioner did not submit its reply to the said Show Cause Notice, the 2nd respondent proceeded to pass impugned order dated - 3 - NC: 2025:KHC:54642 WP No. 38312 of 2025 HC-KAR
16.08.2024 under Section 74 of the KGST Act, 2017 confirming the total demand of Rs.2,59,92,241/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause could not submit replies / documents to the show-cause notice dated 22.05.2024 and resultantly, could not contest proceedings. Aggrieved by the said order, the petitioner having no option has approached this Court by way of the present petition interalia contending that the inability and omission on the part of the petitioner to submit a reply to the pre-intimation notice and 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 a reply to the show-cause notice and contest the proceedings.
Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. - 4 - NC: 2025:KHC:54642 WP No. 38312 of 2025 HC-KAR
Though several contentions have been urged by both sides, having regard to the specific assertion on the part of the petitioner that its 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 order dated 16.08.2024 and remitting the matter back to the 2nd respondent for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned show-cause notice dated 22.05.2024.
Operative part
In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned order at Annexure – D dated
16.08.2024 passed by the 2nd respondent is hereby set aside. (iii) The matter is remitted back to the 2nd respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 22.05.2024. - 5 - NC: 2025:KHC:54642 WP No. 38312 of 2025 HC-KAR (iv) Petitioner is directed to appear before the 2nd respondent on 02.02.2026 without awaiting further notice from the 2nd respondent. (v) Liberty is reserved in favour of the petitioner to submit replies, documents, etc., which shall be considered by the 2nd respondent, who shall provide sufficient and reasonable opportunity to the petitioner and hear them and proceed further in accordance with law. (vi) In the event, the petitioner does not appear before the 2nd respondent on 02.02.2026 as stated supra, the present order shall stand automatically recalled without further orders. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 4 Sl No.: 15
Questions this judgment answers
What did the Court decide in this case?
The Court recorded the following disposition: The petition is hereby allowed
Which statutory provisions did this judgment involve?
Companies Act, 2013; Constitution of India — arts. 226, 227.
Precedent status how later indexed judgments have treated this case
No known negative treatment found in the Courts & Cases corpus.
This is a result about the indexed corpus, not a finding that the judgment remains good law. Coverage may be incomplete.