Hi Tech Audio Systms Private Limited Vs the Commissioner of Commercial Tax

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NC: 2025:KHC:15264 WP No. 10986 of 2025

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 9^TH DAY OF APRIL, 2025

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BEFORE

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THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 10986 OF 2025 (T-RES)

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BETWEEN:

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HI TECH AUDIO SYSTEMS PRIVATE LIMITED 88, WHITEFIELD, OPPOSITE WHITEFIELD POST OFFICE, BOREWELL ROAD, BENGALURU URBAN, BENGALURU-560066 GSTIN-29AAACH2199G1ZF, REPRESENTED BY PRADEEP KUMAR GUPTA (PROF) [DIRECTOR OF THE COMPANY] UNDER THE PRIVATE COMPANY REGISTRATION ACT, 1995

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…PETITIONER

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(BY SRI. D.R. KAPALGANTI, ADVOCATE) AND:

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THE COMMISSIONER OF COMMERCIAL TAX VANIJYA TERIGE BHAVAN, GANDHINAGAR, BENGALURU-560001.

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Digitally signed by CHANDANA B M Location: High Court of Karnataka

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THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES,LGSTO-36, NO.58, 2^ND FLOOR, HAL 2^ND STAGE, DEFENCE COLONY, 100 FEET ROAD, INDIRANAGAR, BENGALURU-560038

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…RESPONDENTS

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(BY SMT. JYOTHI M. MARADI, HCGP)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO (I) QUASHING THE ORDER DATED 03.08.2024 PASSED BY 2^ND RESPONDENT VIDE NO.3830/2019-20, AND THE DRC-07 BEARING REF NO. ZD290824014600J DATED 05.08.2024 ISSUED BY 2^ND RESPONDENT IS HEREWITH ENCLOSED AND PRODUCED AS ANNEXURE - G AND G1 AND ETC.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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NC: 2025:KHC:15264 WP No. 10986 of 2025

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CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

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ORAL ORDER

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In this petition, the petitioner sought for following relief:

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" i) Issue Writ of Certiorari or in the like nature of Certiorari quashing the order dated 03.08.2024 passed by 2nd respondent vide No.3830/2019-20, and the DRC-07 bearing ref No. ZD290824014600J dated 05.08.2024 issued by 2nd respondent is herewith enclosed and produced as ANNEXURE - G and G1;

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(ii) Issue Writ of Prohibition, not to proceed further steps or measures or any such kind of initiatives pertaining to recovery(s) over the impugned demand made thereof vide - order dated 03.08.2024 passed by 2nd respondent vide No.3830/2019-20, and the DRC-07 bearing ref No. ZD290824014600J dated 05.08.2024 issued by 2nd respondent is herewith enclosed and produced as ANNEXURE - G and G1.

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(iii) Pass such other or further orders as this Hon'ble Court may deem fit in the facts and circumstances of this case, in the interest of justice and equity."

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Heard learned counsel for the petitioner and learned

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HCGP for the respondents and perused the material on record.

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A perusal of the material on record will indicate that the

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petitioner filed Form GSTR3B for the month of April 2019 to March 2020. The respondent issued the intimation of liability under

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NC: 2025:KHC:15264 WP No. 10986 of 2025

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Section 73(5)/Section 74(5) of GST Act, 2017 dated 23.05.2024, calling for explanation as to the difference/discrepancy between Form GSTR3B and Form GSTR2A submitted by the petitioner. Pursuant to the same, the respondent issued Form GST DRC-01A intimation of tax dated 24.05.2024 ascertained as being payable under Section 73(5) for the tax period April 2019-March 2020 to the petitioner and issued Show Cause Notice dated 29.05.2024 to the petitioner, who did not submit any reply to the same and consequently, the respondent proceeded to pass the impugned adjudication order dated 03.08.2024 at Annexure – G and the FORM DRC-7 dated 05.08.2024 at Annexure-G1, which are assailed in the present petition.

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Learned counsel for the petitioner submits that the petitioner did not receive the show cause notice and due to bona fide reasons and unavoidable circumstances and sufficient cause, the petitioner could not submit his reply to the show cause notice and the impugned ex-parte orders deserve to be quashed and the matter is remitted back to the respondent for reconsideration of the matter afresh in accordance with law by providing an opportunity to the petitioner to submit a reply to the show cause notice and

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4 - NC: 2025:KHC:15264 WP No. 10986 of 2025

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thereafter to pass appropriate orders. It is also submitted that the impugned orders are vitiated on account of non-consideration of the Circular issued by the Central Government, Government of India, bearing No.183/15/2022-GST dated 27.12.2022. It is therefore submitted that the impugned orders deserve to be quashed.

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Per contra, learned HCGP for respondent would support the impugned orders and submit that there is no merit in the petition and the same is liable to be dismissed, especially when the petitioner did not exercise his due diligence in participating in the impugned proceedings.

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A perusal of the material on record including the impugned orders will indicate that it is an undisputed fact that the petitioner did not respond/reply to the show cause notice and the impugned ex-parte orders have been passed without hearing the petitioner. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit the reply to the show cause notice and participate in the

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proceedings was due to bona fide reasons, unavoidable circumstances and sufficient cause, by adopting a justice oriented

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NC: 2025:KHC:15264 WP No. 10986 of 2025

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approach and in order to provide one more opportunity to the petitioner, I deem it just and appropriate to set aside the impugned orders and remit the matter back to the respondent for reconsideration afresh in accordance with law by issuing certain directions.

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In the result, I pass the following:

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ORDER

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i) The petition is hereby allowed ;

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ii) The impugned orders passed by respondent No.2 at Annexures-G and G1 dated 03.08.2024 and 05.08.2024, are hereby set aside;

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iii) The matter is remitted back to the stage of petitioner submitting reply to the Show Cause Notice dated 29.05.2024 to the respondent for reconsideration afresh in accordance with law, bearing in mind the aforesaid Circular bearing No.183/15/2022-GST dated 27.12.2022 subject to petitioner depositing 10% of the Tax amount before the Trial Court before 12.05.2025;

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iv) The petitioner shall appear before the respondent on 12.05.2025 on which date, he shall submit his reply to the show cause notice along with relevant documents.

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NC: 2025:KHC:15264 WP No. 10986 of 2025

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v) Upon the petitioner submitting a reply along with relevant documents to the show cause notice, on 12.05.2025, the respondent shall afford a reasonable opportunity to the petitioner and hear him and proceed further in accordance with law.

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vi) It is further made clear that in the event petitioners do not appear on 12.05.2025, the present order shall stand automatically recalled/cancelled and the present petition shall stand revived/ restored without further orders and without reference to the Bench.

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vii) Respondent as well as Punjab National Bank, Delhi New Karol Bagh Gurd Rd Branch, Gurdwara Road, Karol Bagh, New Delhi are directed to defreeze the account of the petitioner immediately upon receipt of the copy of this order.

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Sd/(S.R.KRISHNA KUMAR) JUDGE

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MDS List No.: 2 Sl No.: 45

Hi Tech Audio Systms Private Limited v. the Commissioner of Commercial Tax

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Hi Tech Audio Systms Private Limited v. the Commissioner of Commercial Tax

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