M/S Orkla India Pvt. Ltd., Vs the Assistant Commissioner of Central Tax.

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NC: 2025:KHC:43475 WP No. 13512 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30^TH DAY OF OCTOBER, 2025

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BEFORE

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THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 13512 OF 2025 (T-RES)

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BETWEEN:

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M/S ORKLA INDIA PVT. LTD., (FORMERLY KNOWN AS EASTERN CONDIMENTS PVT LTD.,) NO.1^ST , 2^ND AND 3^RD FLOOR, 100 FEET INNER RING ROAD, EJIPURA, ASHWINI LAYOUT, VIVEK NAGAR, BANGALORE – 560 047 (REP. BY SHRI GURUPRASAD M. N., GENERAL MANAGER, INDIRECT TAXES) INCORPRATED UNDER THE COMPANIES ACT, 1956

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…PETITIONER

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(BY MISS. MEGHANA LAL & SRI. RAVI RAGHAVAN, ADVOCATES)

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AND:

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Digitally signed by CHANDANA B M

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Location: High Court of Karnataka

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THE ASSISTANT COMMISSIONER OF CENTRAL TAX., NORTH DIVISION-7, BENGALURU NORTH GST COMMISSIONERATE, NO.59, 1^ST FLOOR, HMT BHAVAN, BELLARY ROAD, GANGA NAGAR, BENGALURU – 560 032

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…RESPONDENT

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(BY SRI. AKASH B. SHETTY, ADVOCATE)

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THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA QUASHING THE IMPUGNED ORDER-IN-ORIGINAL NO. 13/2024-25-GST-AC-ND7 DATED 28.08.2024 PASSED BY THE RESPONDENT, ENCLOSED AS ANNEXURE-A, DEMANDING THE TAX OF RS. 83,34,044/-, ALONG WITH INTEREST AND PENALTY UNDER SECTION 73 OF THE CGST ACT, 2017 AND ETC.,

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NC: 2025:KHC:43475 WP No. 13512 of 2025

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HC-KAR

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

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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, petitioner seeks for the following reliefs:

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“a) Issue a writ of Certiorari or any other writ or order or direction under Article 226 of the Constitution of India quashing the Impugned Order-in-Original No. 13/2024-25-GST-AC-ND7 dated 28.08.2024 passed by the Respondent, enclosed as Annexure-A, demanding the tax of Rs. 83,34,044/-, along with interest and penalty under Section 73 of the CGST Act, 2017;

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b) hold that the Respondent has passed the Impugned Order in violation of the principles of natural justice and in contravention of the statutory mandate under Section 73(9) and 75(4) of the CGST Act, 2017 read with Section 169 of the CGST Act, 2017;

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c) pass such further order(s) and other reliefs as the nature and circumstances of the case may require.”

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Heard learned counsel for the petitioner and learned

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counsel for the respondents and perused the material on record.

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A perusal of the material on record will indicate that

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pursuant to issuance show cause notice dated 09.03.2021 to the petitioner under Section 73(1) of the CGST Act, the petitioner did

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3 - NC: 2025:KHC:43475 WP No. 13512 of 2025

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HC-KAR

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not submit any reply to the aforesaid show cause notice. Thereafter, the respondent proceeded to pass the impugned exparte adjudication order dated 28.08.2024 under Section 73(9) of the CGST/KGST Act, aggrieved by which the petitioner is before this court by way of the present petition.

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It is a specific contention of the petitioner that he did not have the knowledge of the aforesaid notice, since the same were uploaded under the tab ‘Additional notices/orders’ in the common GST portal and due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner was not in a position to submit reply and contest the proceedings and as such, it is necessary that the impugned order dated 28.08.2024 is set aside and the matter be remitted back to the respondent for reconsideration afresh to the stage of the petitioner submitting reply to the show cause notice and to proceed further in the matter.

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Per contra learned counsel for the respondent submits that there is no merit in the petition and that the same is liable to be dismissed.

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A perusal of the material on record will indicate that though several contentions have been urged by both sides in

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4 - NC: 2025:KHC:43475 WP No. 13512 of 2025

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HC-KAR

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support of their respective claims, it is an undisputed fact and a matter of record that the petitioner did not submit any reply to the notice issued by the respondent nor did he participate in the impugned proceedings, which culminated in the impugned exparte adjudication order in the absence of the petitioner. Under these circumstances, in order to provide one more opportunity to the petitioner to submit reply to the show cause notice and contest the proceedings, I deem it just and appropriate to adopt justice oriented approach and set aside the impugned order at Annexure A dated 18.03.2024 and remit the matter back to the respondent for reconsideration afresh to the stage of the petitioner submitting reply to the show cause notice and contest the proceedings in accordance with law, subject to payment of cost of Rs.15,000/-.

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In the result, I pass the following:

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ORDER

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(i) The petition is allowed, subject to payment of cost of Rs.15,000/- to the Karnataka High Court Legal Services Authority, Bengaluru, within a period of six weeks from today.

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5 - NC: 2025:KHC:43475 WP No. 13512 of 2025

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HC-KAR

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(ii) The impugned order at Annexure-A dated 28.08.2024 passed by the respondent is hereby quashed.

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(iii) The matter is remitted back to the respondent for reconsideration afresh from the stage of the petitioner submitting its reply to show-cause notice dated 09.03.2021, in accordance with law.

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(iv) The petitioner shall appear before the respondent on 27.11.2025 without awaiting further notice from the respondent, failing which the present order shall stand recalled automatically, without further reference to the Bench and without further orders.

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(v) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents etc., which shall be considered by the respondent, who shall provide sufficient and reasonable opportunity to the petitioner, hear him and proceed further, in accordance with law.

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Sd/(S.R.KRISHNA KUMAR) JUDGE

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BMC

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List No.: 1 Sl No.: 34

M/S Orkla India Pvt. Ltd., v. the Assistant Commissioner of Central Tax.

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M/S Orkla India Pvt. Ltd., v. the Assistant Commissioner of Central Tax.

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