M/S Amanthrana Vs State of Karnataka

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NC: 2025:KHC:42185 WP No. 24729 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24^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. 24729 OF 2025 (T-RES)

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BETWEEN:

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M/S AMANTHRANA THANISANDRA MAIN ROAD, NO 11, AND 12, DR. SHIVARAMA KARANTH NAGAR POST JAKKUR, BENGALURU – 560 077. (REPRESENTED BY PARTNER GANESH K. POOJARI.)

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…PETITIONER

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(BY SMT. NEHA ALUR, ADVOCATE)

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AND:

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

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STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF FINANCE, GOVERNMENT OF KARNATAKA, AMBEDKAR VEEDHI, BENGALURU – 560 001.

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THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-057, NO.669/L, 3^RD FLOOR, 1^ST STAGE, 2^ND BLOCK, HSR LAYOUT, BENGALURU – 560 043.

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…RESPONDENTS

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(BY SRI. HEMA KUMAR K., AGA)

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THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT IN THE NATURE OF CERTIORARI QUASHING THE ADJUDICATION ORDER

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NC: 2025:KHC:42185 WP No. 24729 of 2025

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HC-KAR

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PASSED UNDER SECTION 73(9) OF THE KGST/CGST ACT, DATED.18/02/2025, BEARING NO. ACCT/LGSTO-57/2020-21/DRC7/2024-25 AT ANNEXURE-D, ISSUED BY RESPONDENT-2 FOR THE PERIOD 2020-21 IN SO FAR AS THE PETITIONER IS CONCERNED 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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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 Writ in the nature of certiorari quashing the adjudication order passed under section 73(9) of the KGST/CGST Act, dated: 18.02.2025, bearing No: ACCT/LGSTO-57/2020-21/DRC-7/2024-25 at ANNEXURE-D issued by Respondent-2 for the period 2020-21 in so far as the petitioner is concerned.

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(B) Issue Writ in the nature of certiorari quashing the demand in DRC-07, dated: 18.02.2025, bearing reference no: period 2020-21 in so far as the petitioner is concerned.

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(C) Issue any other writ or direction that may be deemed fit in the facts and circumstances of the instant case in the interests of justice. Including the cost of the Writ Petition.”

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Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record.

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3 - NC: 2025:KHC:42185 WP No. 24729 of 2025

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HC-KAR

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A perusal of material on record will indicate that pursuant to notice in Form GST ASMT-10 dated 13.10.2023, the respondent No.2 issued an intimation notice under Form GST DRC-01A dated 15.10.2024 to the petitioner, who did not issue any reply/response to the same. Subsequently, the respondent No.2 issued a show-cause notice dated 11.11.2024 under Section 73(1) of the CGST/KGST Act, 2017. Since the petitioner did not submit his reply to the said show-cause notice also, the respondent No.2 proceeded to pass the impugned order dated 18.02.2025 under Section 73(9) of the CGST/SGST Act, 2017 confirming the total demand of Rs.17,19,747/- including the tax, interest and penalty.

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Learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause, petitioner could not submit replies/ documents to neither the preintimation notice nor the show-cause notice under section 73(1) of the CGST/KGST Act, 2017 and resultantly could not contest the 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

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4 - NC: 2025:KHC:42185 WP No. 24729 of 2025

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HC-KAR

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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.

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

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Though several contentions have been urged by both sides, the learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner did not file its reply/ documents, which culminated in the impugned ex-parte order. 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 order

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5 - NC: 2025:KHC:42185 WP No. 24729 of 2025

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HC-KAR

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dated 18.02.2025 remitting the matter back to the respondent No.2 for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the show-cause notice dated 11.11.2024 by imposing 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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In the result, I pass the following:

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ORDER

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(i) The petition is hereby allowed subject to payment of cost of Rs.10,000/- to the Karnataka High Court Legal Services Authority, Bengaluru, within a period of six weeks from today.

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(ii) The impugned order dated 18.02.2025 passed by the respondent No.2 under Section 73(9) of the KGST Act, 2017 at Annexure – D is hereby set aside.

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(iii) The matter is remitted back to the respondent No.2 for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the Show-cause Notice dated 11.11.2024 issued under section 73(1) of the CGST/KGST Act, 2017.

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NC: 2025:KHC:42185 WP No. 24729 of 2025

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HC-KAR

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(iv) The petitioner is directed to appear before the respondent No.2 on 24.11.2025 without awaiting further notice from the respondent No.2.

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

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(vi) In the event, the Petitioner does not appear before the respondent No.2 on 24.11.2025 as stated supra, present order shall stand automatically recalled without further orders.

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Sd/(S.R.KRISHNA KUMAR) JUDGE

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MDS

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List No.: 3 Sl No.: 15

M/S Amanthrana v. State of Karnataka

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M/S Amanthrana v. State of Karnataka

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