Nutricia International Private Limited Vs Assistant… — Company and Corporate | Karnataka HC (2025)

Nutricia International Private Limited Vs Assistant… — Company and Corporate | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Impugned order dated 20.03.2024 (Annexure A) set aside; matter remitted back to respondent No. 1 — petitioner to appear on 28.04.2025 and submit reply with documents, followed by personal hearing and fresh proceedings in accordance with law; order stands automatically recalled and petition revived if petitioner defaults in appearance.

Issue for consideration

Whether the impugned adjudication order dated 20.03.2024 passed by Respondent No. 1 without considering the petitioner's reply to the show cause notice and without affording an opportunity of personal hearing deserved to be quashed and the matter remitted for fresh adjudication.

Court's answer

It is an undisputed fact that the petitioner filed its reply to the show cause notice, but respondent No. 1 failed to consider the said reply and passed the impugned ex-parte order without granting an opportunity of personal hearing to the petitioner.

Ratio / Principle

Adopting a justice oriented approach in order to provide one more opportunity to the petitioner, the Court deemed it just and appropriate to set aside the impugned order and remit the matter back to respondent No. 1 for reconsideration afresh in accordance with law by issuing certain directions.

Key takeaways

The petitioner was directed to appear before respondent No. 1 on 28.04.2025 without awaiting further notice and submit its reply to the show cause notice along with relevant documents, upon which the respondent shall afford reasonable and sufficient opportunity, hear the petitioner and proceed further in accordance with law.ratio¶53
If the petitioner does not appear before respondent No. 1 on 28.04.2025, the present order shall stand automatically recalled/revoked and the petition shall stand revived without reference to the Bench.ratio¶54

Detailed headnote1 paragraphs

GST adjudication — ex-parte order set aside for non-consideration of taxpayer's reply and denial of personal hearing. Respondent No. 1 (Assistant Commissioner, LGSTO-63) adjudicated the SCN dated 28.12.2023 — arising from a Form ASMT-10 discrepancy between GSTR3B and GSTR1 for April 2018 to March 2019 — by order dated 20.03.2024 (Annexure A, No. ACCT.LGSTO-63/T.No.2023-24) despite the petitioner having filed a written reply dated 09.01.2024, and without granting a personal hearing. The High Court of Karnataka allowed the writ petition, set aside the impugned order and remitted the matter, directing the petitioner to appear before respondent No. 1 on 28.04.2025 with its reply and documents, whereafter the respondent shall afford reasonable and sufficient opportunity and proceed in accordance with law; failing appearance, the order stands automatically recalled/revoked and the petition revived.

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NC: 2025:KHC:11888 WP No. 35482 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 21^ST DAY OF MARCH, 2025

BEFORE

THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

WRIT PETITION NO.35482 OF 2024 (T-RES)

BETWEEN:

NUTRICIA INTERNATIONAL PRIVATE LIMITED 102, 2ND FLOOR, CORPORATE PARK, MYSORE ROAD BENGALURU, KARNATAKA 560026 COMPANY REGISTERED UNDER THE COMPANIES ACT , 1956 AND REPRESENTED BY ITS AUTHORISED SIGNATORY (MANAGER) SUNITH GOEL S/O RAJESH GOEL

…PETITIONER

(BY SRI. PREETAM SINGH A/W SRI. MADHAV BALAJI KASHYAP, ADVOCATES)

AND:

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

ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO 63 NO. 642, PIONEER PLAZA, KENCHENAHALLI MAIN ROAD RAJARAJESHWARI NAGAR, BENGALURU - 560098

ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO 61 RAJARAJESHWARI NAGAR, BENGALURU – 560 098.

…RESPONDENTS

(BY SMT JYOTHI M MARADI, HCGP)

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT TO SET ASIDE THE IMPUGNED ORDER DATED 20.3.2024 (ANNEXURE-A) BEARING NO.

* Retyped and replaced vide Chamber order dated 13.05.2025

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ACCT.LGSTO-63/T.NO.2023-24 PASSED BY THE R-1 ADJUDICATING THE SCN DTD 28.12.2023 AND ETC.

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

CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

The present petition is filed for the following reliefs:

“A. Issue an appropriate writ, order or direction to set aside the Impugned Order dated 20.03.2024 (Annexure A) bearing No. ACCT.LGSTO-63/T.No.2023-24 passed by the Respondent No. 1 adjudicating the SCN dated 28.12.2023.

B. Issue a writ in the nature of mandamus directing the Respondent No. 1 to grant a personal hearing to the Petitioner before fresh adjudication of the SCN dated 28.12.2023 (Annexure E);

C Issue an appropriate writ, order or to certiorari to set aside the Notice dated 06.12.2024 (Annexure H) issued by the Respondent No.1 to the ICICI Bank bearing no. ACCT/LGSTO63/T.No.459/2024-25.

D. Award the costs of the proceedings; and

E. Grant any other relief(s) or order(s), which the Honorable Court deems fit in the circumstances of the case in the interests of justice and equity.”

Heard the learned counsel for the petitioner and the learned

Additional Government Advocate for respondents and perused the

material on record.

A perusal of the material on record will indicate that the petitioner filed Form GSTR3B for the month of April – 2018 to

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March - 2019. The respondent no.2 issued Form ASMT-10 notice, calling for explanation as to the difference/discrepancy between Form GSTR3B and Form GSTR1 submitted by the petitioner. Pursuant to the same, the respondent no.2 issued show cause notice to the petitioner to which the petitioner filed its written reply dated 09.01.2024 and consequently, the respondent no.1 without granting an opportunity of personal hearing proceeded to pass the impugned order at Annexure A dated 20.03.2024 stating that the petitioner failed to reply to the show-cause notice, which are assailed in the present petition.

Learned counsel for the petitioner submits that the petitioner

filed its reply to the show-cause notice issued by the respondentno.2, but the respondent no.1 failed to consider the reply filed by the petitioner and proceeded to pass the impugned order without granting an opportunity of personal hearing and hence the impugned ex-parte order deserves to be quashed and

the matter is remitted back to the respondent no.1 for reconsideration of the matter afresh in accordance with law by providing an opportunity of personal hearing to the petitioner and

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thereafter to pass appropriate orders. It is therefore submitted that

the impugned order deserves to be quashed.

Per contra, learned Additional Government Advocate for respondents would support the impugned order and submit that there is no merit in the petition and the same is liable to be dismissed.

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 respondent no.1 failed to consider the said reply. The impugned ex-parte order has been passed without granting an opportunity of personal hearing to the petitioner. Under these circumstances, in view of the respondent no. 1 not considering the reply filed by the petitioner and not providing an opportunity of personal hearing to the petitioner before passing the impugned order, 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 order and remit the matter back to the respondent no.1 for reconsideration afresh in accordance with law by issuing certain directions.

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NC: 2025:KHC:11888 WP No. 35482 of 2024

7. In the result, I pass the following:

ORDER

i) The petition is hereby allowed ;

ii) The impugned order passed by the respondent at Annexure – A dated 20.03.2024 is hereby set aside.

iii) Matter is remitted back to the stage of petitioner submitting a reply to the show cause notice at Annexure-A.

iii) The petitioner shall appear before the respondent on 28.04.2025 , without awaiting any further notice from respondent No.1, on which date, petitioner shall submit its reply to the show cause notice along with relevant documents.

v) Upon the petitioner submitting a reply along with relevant documents to the show cause notice, on 28.04.2025, the respondent shall afford reasonable and sufficient opportunity to the petitioner and hear them and proceed further in accordance with law.

vi) It is made clear that in the event, petitioner does not appear before respondent No.1 on 28.04.2025, the present order shall stand automatically

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NC: 2025:KHC:11888 WP No. 35482 of 2024

recalled/revoked and the present petition shall stand revived without reference to the Bench.

SD/(S.R.KRISHNA KUMAR) JUDGE

BS List No.: 1 Sl No.: 12