M/S Manidhari Trading Company Vs State of Karnataka

M/S MANIDHARI TRADING COMPANY, (HINDU UNDIVIDED FAMILY BUSINESS) (THE BUSINESS HAS BEEN WOUND UP AND THE GST REGISTRATION HAS BEEN CANCELLED WITH EFFECT FROM 30.03.2019) REPRESENTED THROUGH ITS KARTHA MR. RAJESH JAIN, S/O J. P. JAIN, AGED ABOUT 53 YEARS, R/O NO.5, JINESHWAR APARTMENT, 1^ST CROSS, NEAR SHESHADRIPURAM POLICE STATION, NEHRUNAGAR, SHESHADRIPURAM BENGALURU – 560 020

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…PETITIONER

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(BY SRI. BHARATH KUMAR V., 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 THROUGH ITS SECRETARY, DEPARTMENT OF COMMERCIAL TAXES GOODS AND SERVICE TAX (GST) VIKASA SOUDHA, AMBEDKAR VEEDHI, BENGALURU – 560 001

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DEPUTY COMMISSIONER OF COMMERCIAL TAX, (AUDIT)-1.2 DGSTO-1, YESHWANTHPUR HAVING OFFICE AT BMTC BUILDING, 5^TH FLOOR, YESHWNATHPUR BENGALURU – 560 022

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…RESPONDENTS

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(BY SRI. K. HEMA KUMAR, AGA)

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NC: 2025:KHC:44766 WP No. 27029 of 2024

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HC-KAR

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 30.01.2023 BEARING NO. DCCT(AUDIT)1.2/T_____ 2022-23 ISSUED BY THE RESPONDENT NO.2 HEREIN (ANNEXURE-A) 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, order or direction in the nature of certiorari or any other appropriate writ, order or direction quashing the order dated 30.01.2023 bearing No.DCCT(AUDIT)1.2/T_____ 2022-23 issued by the Respondent No.2 herein (Annexure-A)_

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b. Issue a writ, order or direction in the nature of mandamus or any other appropriate writ, order or direction directing the Respondent herein to consider the communication dated 06.02.2023 (Annexure B);

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c. Grant such other order that this Hon’ble Court deems fit in the facts and circumstances of the present matter.”

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Heard the learned counsel for the petitioner and the

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learned AGA for respondents and perused the material on record.

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3 - NC: 2025:KHC:44766 WP No. 27029 of 2024

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HC-KAR

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A perusal of the material on record will indicate that the petitioner filed its Return of Turnovers for tax periods 2018-19. The Respondent initiated proceedings u/s. 74 of the Act CGST/KGST Act, 2017 and issued intimation dated 07.11.2022 in Form No.GST DRC-01A to the petitioner to file reply. Subsequently, the 2^nd respondent issued show-cause notice dated 20.12.2022 as per section 74(1) of KGST Act, calling for explanation with regard to wrong claim of income tax credit and short / non-payment of net tax through cash. The Petitioner filed its reply dated 12.01.2023 to the aforesaid show-cause notice. Pursuant to the same, the respondent without considering the reply filed by the Petitioner and not providing the petitioner a sufficient opportunity of personal hearing u/s. 75(4) of the Act proceeded to pass the impugned Order at Annexure-A dated 30.01.2023, which are assailed in the present petition.

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Learned counsel for the petitioner submits that the petitioner had filed its reply to the show-cause notice dated 20.12.2022 and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned order at Annexure-A dated 30.01.2023 and the

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NC: 2025:KHC:44766 WP No. 27029 of 2024

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HC-KAR

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impugned order 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/ produce necessary documents and thereafter to pass appropriate orders.

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Per contra, learned AGA 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.

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A perusal of the material on record including the impugned order will indicate that it is an undisputed fact that the petitioner filed its reply to the show cause notice and the impugned order has been passed without granting an opportunity to the petitioner to produce necessary documents. Under these circumstances, in view of the Respondent failing to provide an opportunity for the petitioner to provide a reasonable opportunity to produce necessary documents by adopting a justice oriented 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

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NC: 2025:KHC:44766 WP No. 27029 of 2024

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HC-KAR

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reconsideration afresh in accordance with law by issuing certain directions by imposing cost of Rs.15,000/- on the petitioner payable to the High Court Legal Services Authority, Bengaluru.

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7. In the result, I pass the following:

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ORDER

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i) The Writ Petition is allowed subject to

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payment of cost of Rs.15,000/- to the High Court Legal Services Authority, Bengaluru.

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ii) The impugned order passed by 2^nd respondent at Annexure-A dated 30.01.2023, is hereby set aside;

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iii) The petitioner shall appear before the 2^nd respondent on 03.12.2025 , on which date, he shall submit his reply to the show cause notice along with relevant documents.

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iv) Upon the petitioner submitting a reply along with relevant documents to the show cause notice, on 03.12.2025 , the 2^nd respondent shall afford a

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