M/S MD Hr Services Private Limited Vs State of Karnataka

M/S MD HR SERVICES PRIVATE LIMITED ( A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956) REPRESENTED BY ITS DIRECTOR MR. SYED NOOR PASHA NO. 853, NEAR MADEENA CONSULTANCY K G MOHALLA, KOLAR – 563 101.

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…PETITIONER

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(BY SRI. RAGHAVENDRA B HANJER, 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 VIDHANA SOUDHA AMBEDKAR VEEDHI BANGALORE - 560 001.

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THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-180 BINDU BUILDING, NEAR DOME LIGHT CIRCLE KOLAR 563 101.

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…RESPONDENTS

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(BY SRI. K. HEMA KUMAR, AGA)

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT, ORDER OR DIRECTION IN THE NATURE OF CERTIORARI BY QUASHING THE IMPUGNED THE SHOW CAUSE NOTICE BEARING NO.ACCT/LGSTO-

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NC: 2025:KHC:44493 WP No. 32495 of 2025

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HC-KAR

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180/ADJUDICATION/SCN/2024-25 DATED 07.05.2024 (ANNEXURE-A1) ALONG WITH SUMMARY OF SHOW CAUSE NOTICE BEARING REFERENCE NO. ZD290524013494D DATED 07.05.2024 ISSUED IN FORM GST DRC-01 BY THE 2^ND RESPONDENT (ANNEXURE-A2), EX PARTE ORDER OF ADJUDICATION BEARING NO. ACCT/LGSTO180/ADJUDICATION/ORDER/3B VS R1/2024-25 DATED 06.08.2024 (ANNEXURE-B1) ALONG WITH SUMMARY OF THE ORDER BEARING REFERENCE NO. ZD290824022265B ISSUED IN FORM GST DRC-07 DATED 06.08.2024 PASSED BY THE 2^ND RESPONDENT (ANNEXURE-B2) AND THE ORDER OF APPEAL REJECTION ALONG WITH ACKNOWLEDGMENT FOR SUBMISSION OF APPEAL BEARING REFERENCE NO. ZD290425096699G DATED 29.04.2025 ISSUED / PASSED IN FORM GST APL-02 (ANNEXURE-C1 AND C2) BY THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS)-4, BANGALORE 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 the following reliefs:

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“a) Issue a writ, order or direction in the nature of Certiorari by quashing the impugned the Show Cause Notice bearing No. ACCT/LGSTO180/Adjudication/SCN/2024-25 dated 07.05.2024 (Annexure- 'A1') along with Summary of Cause Notice bearing Show Reference No. ZD290524013494D dated 07.05.2024 issued in FORM GST DRC-01 by the 2^nd Respondent (Annexure'A2'), ex parte Order of Adjudication bearing 180/Adjudication/Order/3B No. ACCT/LGSTO-R1/2024-25 dated 06.08.2024 (Annexure'B1') along with Summary of the Order bearing Reference No: ZD290824022265B issued in FORM GST DRC-07

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NC: 2025:KHC:44493 WP No. 32495 of 2025

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HC-KAR

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dated 06.08.2024 passed by the 2 Respondent (Annexure'B2') and the Order of appeal rejection along with Acknowledgment for submission of appeal bearing Reference No. ZD290425096699G dated 29.04.2025 issued / passed in FORM GST APL-02 (Annexure- 'C1' and 'C2') by the Joint Commissioner of Commercial Taxes (Appeals)-4, Bangalore;

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b) Alternatively, issue a writ, order or direction in the nature of Certiorari by quashing the impugned the impugned ex parte Order of Adjudication bearing No. ACCT/LGSTO-180/Adjudication/Order/3B VS R1/2024-25 dated 06.08.2024 (Annexure- 'B1') along with Summary of the Order bearing Reference No: ZD290824022265B issued in FORM GST DRC-07 dated 06.08.2024 passed by the 2nd Respondent (Annexure- 'B2') and also the Order of appeal rejection along with Acknowledgment for submission of appeal bearing Reference No. ZD290425096699G dated 29.04.2025 Issued / passed in FORM GST APL-02 (Annexure- 'C1' and 'C2') by the Joint Commissioner of Commercial Taxes (Appeals)-4, Bangalore and thereby, remand the matter back to the 2nd Respondent to consider the appeal afresh on merits after granting sufficient opportunity to file reply to the show cause notice and also an opportunity of personal hearing to the Petitioner;

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c) Pass such other orders or directions as deemed fit and proper in the facts and circumstances of the case in the interest of justice.”

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NC: 2025:KHC:44493 WP No. 32495 of 2025

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HC-KAR

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Heard learned counsel for the petitioner and learned

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HCGP for the respondents and perused the material on record.

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A perusal of material on record will indicate that pursuant to an intimation notice at Annexure F in Form GST DRC01A dated 05.03.2024, the 2^nd respondent issued a show-cause notice dated 07.05.2024 under Section 73(1) of the CGST/KGST Act, 2017 alleging that the Output tax liability declared by the petitioner in returns furnished under Section 39 is less than the output tax liability declared in statement of outward supplies furnished in Form GSTR-1. Since the petitioner did not replied to the said notices, the 2^nd respondent passed an adjudication order dated 06.08.2024 under Section 73(9) of the CGST / KGST Act confirming a total demand of Rs.43,99,200/- along with interest and penalty, without granting an opportunity of personal hearing to the petitioner. Pursuant to the aforesaid order, the petitioner filed an appeal as well as an application for condonation of delay on 18.04.2025 which was dismissed as barred by limitation vide impugned order dated 29.04.2025. Aggrieved by the aforesaid orders, the petitioner is before this Court by way of the present petition.

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5 - NC: 2025:KHC:44493 WP No. 32495 of 2025

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HC-KAR

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In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that the petitioner did not receive the aforesaid notices issued by the respondents and hence could not submit reply / documents to the same which has culminated in the impugned ex-parte order and if an opportunity is given to the petitioner to file reply / documents to the said notices by setting aside the impugned ex-parte order, the petitioner would do so and the 2^nd respondent may be directed to pass fresh order after considering the replies / documents filed by the petitioner. It is further submitted that the impugned proceedings initiated pursuant to the impugned show cause notice dated 07.05.2024 is barred by limitation under Section 73(10) of the KGST Act and as such, the availability of equivalent, efficacious and alternative remedy by way of filing of an appeal under Section 107 of the CGST / KGST Act would not come in the way of the petitioner prosecuting the present petition.

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Per contra, learned AGA for the respondents – revenue submits that the period of limitation has been extended by the

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6 - NC: 2025:KHC:44493 WP No. 32495 of 2025

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HC-KAR

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respondents vide Notification No.13/2022 dated 05.07.2022, Notification Nos. 9 and 56 of 2023 dated 31.03.2023 and 08.12.2023 respectively and as such, it cannot be said that the proceedings are barred by limitation.

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Learned counsel for the petitioner would invite my attention to the Petition in Special Leave Appeal (C) No. 4240/2025 pending before the Apex Court in order to contend that the validity of the said Notifications are seized by the Apex Court and pending adjudication before the Hon’ble Supreme Court.

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In view of the aforesaid facts and circumstances and the submissions made by both sides which will indicate that the validity of the aforesaid Notifications are seized by the Apex Court and which will have an impact / bearing on the impugned proceedings, I am of the view that one more opportunity is required to be granted in favour of the petitioner by setting aside the impugned adjudication order and remitting the matter back to the respondents for reconsideration afresh in accordance with law by issuing certain directions.

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Under these circumstances, in order to avoid multiplicity

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of proceedings and to ensure that there are no conflicting orders, I

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NC: 2025:KHC:44493 WP No. 32495 of 2025

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HC-KAR

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deem it just and appropriate to direct the 2^nd respondent to reconsider the matter afresh and pass a fresh adjudication order in accordance with law after disposal of Special Leave to Appeal (C) No.4240/2025 by the Apex Court.

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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 at Annexure B1 dated 06.08.2024 and order at Annexure C1 dated 29.04.2025 passed by the respondents are hereby set aside.

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(iii) The matter is remitted back to the 2^nd respondent for reconsideration afresh and pass a fresh adjudication order in accordance with law after disposal of SLP No.4240/2025 pending before the Apex Court.

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(iv) The period between the date of the impugned order i.e., 06.08.2024 and the date on which the Apex Court disposes of the aforesaid SLP No.4240/2025 shall stand excluded for the purpose of limitation.

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Sd/(S.R.KRISHNA KUMAR) JUDGE

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SV List No.: 2 Sl No.: 12

M/S MD Hr Services Private Limited v. State of Karnataka

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M/S MD Hr Services Private Limited v. State of Karnataka

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