Chandan Kanyalal Dhanani Vs Assistant Commissioner of Central Taxes

CHANDAN KANYALAL DHANANI, AGED ABOUT 40 YEARS PROPRIETOR OF C. K. DHANANI AND COMPANY, PRACTICING CHARTERED ACCOUNTANT, OFFICE AT NO. 408, 4^TH FLOOR, MOTATI MEADOWS, C.V. RAMAN NAGAR, ABOVE ICICI BANK, OLD MADRAS ROAD, NAGAVARAPALYA BANGALORE – 560 093

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…PETITIONER

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(BY SRI. B C SEETHARAMA RAO, 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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ASSISTANT COMMISSIONER OF CENTRAL TAXES DIVISION - 5, GST COMMISSIONERATE, EAST, 2^ND FLOOR, TTMC, BMTC BUS STAND, OLD AIRPORT ROAD, DOMMALURU BENGALURU – 560 071

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JOINT COMMISSIONER (IN-SITU), DIVISION – 5, 2^ND FLOOR, TTMC, BMTC BUS STAND OLD AIRPORT ROAD, DOMMALURU BENGALURU – 560 071

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BRANCH MANAGER HDFC BANK LIMITED, JP NAGAR BRANCH NO.455, KRISHNA PLAZA, 9^TH CROSS ROAD OPP. TO ZHANGS CHINESE RESTAURANT MARENAHALLI, 2^ND PHASE, JP NAGAR BANGALORE – 560 078

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NC: 2025:KHC:41778 WP No. 25118 of 2025

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HC-KAR

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BRANCH MANAGER HDFC BANK LIMITED OLD AIRPORT ROAD BRANCH NO.28, THE ASCENT, HAL OLD AIRPORT ROAD MURUGESHPALYA BANGALORE – 560 017

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…RESPONDENTS

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(BY SRI. JEEVAN J. NEERALGI, ADVOCATE)

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT OR DIRECTION TO SET ASIDE/QUASH THE FORM GST DRC-13 BEARING DIN NUMBER 2025035700000072227F DATED 31.03.2025 BY RESPONDENT NO.1 PASSED BY THE RESPONDENT NO.1 WHICH IS ENCLOSED AT ANNEXURE A TO THIS WRIT PETITION AND ETC.

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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 direction to set aside/quash the FORM GST DRC-13 bearing DIN number 2025035700000072227F dated 31.03.2025 by Respondent No. 1 passed by the respondent No.1 which is enclosed at ANNEXURE A to this Writ Petition;

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(b) Issue a writ of certiorari or any other writ or direction to set aside / quash the impugned Order in Original No.409/2022-23/DC dated 27.02.2023, passed by the

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NC: 2025:KHC:41778 WP No. 25118 of 2025

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respondent No.2 which is enclosed at ANNEXURE B to this Writ Petition;

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(c) De-freeze the savings bank account No.01331610009520 maintained at HDFC Bank Limited, JP Nagar Branch, No. 455, Krishna Plaza, 9^th Cross Road, Opp. to Zhangs Chinese Restaurant, Marenahalli 2^nd Phase, JP Nagar, Bangalore - 560 078;

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(d) De-freeze Current account no.50200018538684 maintained at HDFC Bank Limited, No.28, The Ascent, HAL old Airport Road Branch, Muruhesghpalya, Bengaluru – 560 017;

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(e) Grant such other order or direction as deemed fit by this Hon'ble Court in the facts and circumstances of the case.

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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 material on record will indicate that pursuant to enquiry, respondent issued letters and emails dated 30.09.2020, 09.03.2021, 28.09.2020 and 10.03.2021 and summon dated 31.03.2021 to submit documents for the financial years 2015-16 to 2017-18 (upto June 2017) viz., copy of work orders/ agreement, copy of Form 26AS statements, bills/invoices, copy of

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ITR, profit and loss or balance sheet etc., to which petitioner did not issue any reply/response to the same. Subsequently, respondent No.1 issued show cause notice dated 26.04.2021 to the petitioner. Since the petitioner did not submit his reply to the said show-cause notice also, the respondent No.1 proceeded to pass the impugned order dated 27.02.2023 confirming the total demand of Rs.7,02,364/- including the tax, interest and penalty.

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Learned counsel for the petitioner submits that the petitioner has not received any correspondence and he was aware of the proceedings only when he got the letter dated 25.04.2025 from respondent No.1 and hence couldn't submit replies/ documents to neither the letters nor the show-cause notice and resultantly couldn’t 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 letters 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

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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

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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, and the fact that the petitioner did not file its reply/ documents culminated in the impugned ex-parte order.

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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 dated 27.02.2023 remitting the matter back to the respondent No.2 for reconsideration of the matter afresh in

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NC: 2025:KHC:41778 WP No. 25118 of 2025

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HC-KAR

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accordance with law from the stage of petitioner submitting reply to

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the impugned show-cause notice dated 26.04.2021.

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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 order dated 27.02.2023 passed by the respondent No.2 at Annexure – B and the impugned letter in FORM GST DRC-13 dated 31.03.2025 passed by respondent No.1 at Annexure – A are 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 26.04.2021.

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(iv) The petitioner is directed to appear before the respondent No.2 on 21.11.2025 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

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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 21.11.2025 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.: 2 Sl No.: 35

Chandan Kanyalal Dhanani v. Assistant Commissioner of Central Taxes

Case brief

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Chandan Kanyalal Dhanani v. Assistant Commissioner of Central Taxes

Case brief

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