M/S Pragathi Enterprise Vs the Assistant Commissioner… — GST and Indirect Tax | Karnataka HC (2025)

M/S Pragathi Enterprise Vs the Assistant Commissioner… — GST and Indirect Tax | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Show Cause Notice (Annexure-A), Order-in-Original (Annexure-B) and APL-2 order (Annexure-C) set aside; GST registration of the petitioner restored; matter relegated to the show cause notice stage with the petitioner directed to appear before respondent No.1 on 11.08.2025 at 2.30 p.m. without further notice.

Issue for consideration

Whether the impugned show cause notice, Order-in-Original and APL-2 appellate order stand vitiated for having been passed without issuing a notice and/or without providing an opportunity of hearing to the petitioner. +5 more

Court's answer

The impugned order bearing No. ACCT(P)/LGSTO-015/DRC.01/2023-24 dated 21.12.2023 at Annexure-A passed by respondent No.1 is set aside.

Ratio / Principle

The impugned Order-in-original dated 21.03.2024 bearing No.ACCT(p)/LGSTO-015/DRC.07/2023-24 passed by respondent No.1 at Annexure-B is set aside.

Key takeaways

The impugned Order in APL-2 dated 5.12.2024 bearing No.ZD291224018358B at Annexure-C passed by respondent No.2 is set aside.ratio¶50
The GST registration of the petitioner shall stand restored.ratio¶56
The matter is relegated to the status of show cause notice issued to the petitioner, and the petitioner is directed to appear before respondent No.1 on 11.08.2025 at 2.30 p.m. without further notice.ratio

Detailed headnote1 paragraphs

GST (Karnataka HC, Suraj Govindaraj J, 23.07.2025): Writ petition against a Section 73 CGST/KGST Act show cause notice issued in light of a Section 168A notification, the ensuing Order-in-Original, and the APL-2 appellate order. Accepting the petitioner's submission that the lis is covered by the Coordinate Bench decision in M/s. Eternity Projects (WP No.30307/2024, dd 19.11.2024) — that the impugned order was passed without issuing a notice or affording an opportunity of hearing — the Court set aside the show cause notice dated 21.12.2023 (Annexure-A), the Order-in-Original dated 21.03.2024 (Annexure-B) and the APL-2 order dated 05.12.2024 (Annexure-C), restored the petitioner's GST registration, and relegated the matter to the stage of the show cause notice, directing the petitioner to appear before respondent No.1 on 11.08.2025 at 2.30 p.m. without further notice. Petition disposed of. The pleas regarding Section 168A jurisdiction, Section 169 service through the GST portal, bank account attachment, tax liability and refund of the 10% deposit were not adjudicated in the order.

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NC: 2025:KHC:29330 WP No. 2160 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 23^RD DAY OF JULY, 2025

BEFORE

THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

WRIT PETITION NO. 2160 OF 2025 (T-RES)

BETWEEN:

M/S PRAGATHI ENTERPRISE A SOLE PROPRIETORSHIP FIRM A-103, ITTINA ABHA, MUNEKOLALA, MARATHALLI, BENGALURU – 560 037 REP. BY ITS PROPRIETOR SHRI. RAJU PRADEEP KUMAR

…PETITIONER

(BY Smt. LOCHANA S BABU.,ADVOCATE)

AND:

Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA

THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-15, 2^ND FLOOR, A BLOCK, VTK-2, RAJENDRA NAGAR, KORAMANGALA, BENGALURU – 560 047.

THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS-4) NO. 640, 6^TH FLOOR, 80 FEET ROAD, BMTC TTMC BUILDING, KORAMANGALA, BENGALURU – 560 095.

THE STATE OF KARNATAKA THROUGH THE PRINCIPAL SECRETARY FINANCE DEPARTMENT VIDHANA SOUDHA, BENGALURU – 560 001

…RESPONDENTS

(BY SRI.K.HEMAKUMAR, AGA)

2 - NC: 2025:KHC:29330 WP No. 2160 of 2025

HC-KAR

THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE IMPUGNED SHOW CAUSE NOTICE DATED 21.12.2023 BEARING NO. ACCT(P).LGSTO-15/DRC- 01/2023-24, ISSUED BY THE 1 RESPONDENT (ANNEXURE -A) AND QUASHING THE IMPUGNED ORDER-INORIGINAL DATED 21.03.2024 BEARING NO. ACCT(P)/LGSTO-015/ DRC.07/2023-24 PASSED BY THE 1ST RESPONDENT (ANNEXURE. B) ANDS ETC.

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

CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

ORAL ORDER

Learned AGA accepts notice for respondents.

The petitioner is before this Court seeking for the following reliefs:

i. “Issue a Writ of Certiorari quashing the impugned Show Cause Notice dated 21.12.2023 Bearing No.ACCT(P).LGSTO-15/DRC- 01/2023-24, issued by the 1^st Respondent (Annexure -A)

ii. Issue a Writ of Certiorari quashing the impugned Order-In-Original dated 21.03.2024 Bearing No. ACCT(P)/LGSTO-015/ DRC.07/2023-24 passed by the 1^st Respondent (Annexure-B)

iii. Issue a Writ of Certiorari quashing the impugned order in APL-2 dated 05.12.2024 Bearing No.ZD291224018358B, passed by the 2^nd Respondent (Annexure - C) and

3 - NC: 2025:KHC:29330 WP No. 2160 of 2025

HC-KAR

iv. Declare that the actions of the Respondents No.1 in attaching the Bank Account of the petitioner is illegal, unsustainable and in violation of provisions of CGST/KGST Act, 2017 and

v. To issue a Writ of Mandamus or any other Writ, order(s), directions, holding that the impugned proceedings under Section 73 of the CGST ACT/KGST ACT, initiated in light of the notification issued under Section 168A of the CGST Act/KGST Act, is without jurisdiction, and

vi. To issue a Writ of Mandamus or any other Writ, order(s), directions, holding that there is no tax liability payable by the Petitioner and no consequent interest or penalty and

vii. To issue a Writ of Mandamus or any other Writ, order(s), directions, holding that service under SEC. 169 of the CGST Act/KGST Act is proper only when it tantamounts to communication and not merely service and

viii. To issue a Writ of Mandamus or any other Writ, order(s), directions, holding that uploading of Notice(s), Order(s) Communication(s) on the Additional Notice section on the GST portal does not amount to proper service under SEC. 169 of the CGST Act/KGST Act and or

ix. Direct the Respondents to refund the deposit of 10 % remitted by the Petitioner and.

x. To issue a Order(s), Directions, Writ(s) or any other relief as this Hon’ble court deems it fit and proper in the facts and circumstance of the case in the interest of justice and equity.

Learned counsel for the petitioner submits that the lis

in the above matter is covered by the Judgment of the

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HC-KAR

Coordinate Bench of this Court passed in M/s.Eternity Projects -vThe Deputy Commissioner of Commercial taxes (Audit)-3.2

and others¹ and submits that the impugned order has been passed without issuing a notice and or providing an opportunity of hearing to the petitioner.

In that view of the matter, I pass the following:

ORDER

i. The impugned order No. ACCT(P)/LGSTO015/DRC.01/2023-24 dated 21.12.2023 at Annexure-A passed by respondent No.1 is set aside.

ii. The impugned Order-in-original dated 21.03.2024 bearing No.ACCT(p)/LGSTO015/DRC.07/2023-24 passed by respondent No.1 at Annexure-B is set-aside.

iii. The impugned Order in APL-2 dated 5.12.2024 bearing No.ZD291224018358B at Annexure-C passed by respondent No.2 is set-

aside.

1 WP No.30307/2024 DD 19.11.2024

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NC: 2025:KHC:29330 WP No. 2160 of 2025

HC-KAR

iv. The GST registration of the petitioner shall stand restored.

v. The matter is relegated to the status of show cause notice issued to the petitioner and the petitioner is directed to appear before respondent No.1 on 11.08.2025 at 2.30 p.m. without further notice.

vi. With the above observations, the petition stands disposed of.

SD/(SURAJ GOVINDARAJ) JUDGE

VMB List No.: 1 Sl No.: 1