Aepl Infrastructure Private Limited Vs Joint Commissioner of Commercial Taxes

AEPL INFRASTRUCTURE PRIVATE LIMITED 3F AND 3G, TAMAKA INDUSTRIAL AREA, KASBA HOBLI, TAMAKA, KOLAR – 563 101 REGISTERED UNDER THE KARNATAKA GOODS AND SERVICES TAX ACT, 2017 REPRESENTED BY ITS DIRECTOR, SUDHIR KUMAR AWASTHI.

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…PETITIONER

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(BY SRI. PRADEEP SINGH RAWAT FOR SRI. BOLA VEDVYAS SHENOY, ADVOCATES)

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AND:

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JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS)-4, NO. 640, 6^TH FLOOR, BMTC BUILDING, 80 FEET ROAD, 6^TH BLOCK, KORAMANGALA, BENGALURU – 560 095

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

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THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LOCAL GOODS AND SERVICE TAX OFFICE-180, BINDU BUILDING, NEAR DOOM LIGHT CIRCLE KOLAR – 563 101

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THE COMMISSIONER OF COMMERCIAL TAXES (KARNATAKA), VANIJYA THERIGE KARYALAYA, GANDHI NAGAR, KALIDASA ROAD, BENGALURU – 560 009

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THE STATE OF KARNATAKA THROUGH THE SECRETARY FINANCE KARNATAKA GOVERNMENT SECRETARIAT VIDHANA SOUDHA, BENGALURU – 560 01

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…RESPONDENTS

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(BY SRI. K. HEMA KUMAR, AGA)

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NC: 2025:KHC:54073 WP No. 37299 of 2025

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HC-KAR

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THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER ISSUED UNDER SECTION 107(11) BEARING NO. GST.AP.2592025-26 DATED 30-08-2025 (ANNEXURE-M) ISSUED BY RESPONDENT NO.1 AS ISSUED IN CONTRAVENTION OF THE PROVISIONS OF SECTION 16(5) OF THE KGST ACT, 2017 AND CIRCULAR DATED 22.11.2024 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, the petitioner seeks following reliefs:

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“a) Issue a writ in the nature of certiorari and any other writ to quash the impugned order issued under Section 107(11) bearing no.GST.AP.259/2025-26 and order no.ZD290925018699K dated 30.08.2025 (Annexure-M) issued by Respondent no.1 as issued in contravention of the provisions of Section 16(5) of the KGST Act, 2017 and circular dated 22.11.2024, Annexure-L.

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b) Issue a writ in the nature of certiorari and any other writ to quash the order-in-original issued under Section 73(9) bearing no.ACCT/LGSTO-180/DRC07/2022-23 (Annexure-F(1) issued by Respondent No.2 and Summary order bearing no.ZD2902230059876 in FORM GST DRC-07 dated 10.02.2023 (Annexure-F(2)) issued by the Respondent No.2 as demand of tax is without jurisdiction, in view of the amended provisions of Section 16(5) of the KGST Act, 2017;

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HC-KAR

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c) Issue a writ in the nature of certiorari and any other writ, to quash the recovery notice issued in FORM GST DRC-25 dated 18.11.2025 bearing no.ACCT/LGSTO-180/DRC-25/2025-26 (Annexure-N) issued by Respondent No.2 as Demand of tax is without jurisdiction, in view of the amended provisions of Section 16(5) of the KGST Act, 2017;

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d) Issue an appropriate writ to condone the delay in filing of the appeal under Section 107(1) of the KGST Act, 2017;

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e) Alternatively, issue an appropriate writ to remand the matter back to the Respondent No.1 to consider the same in view of the amended provisions of Section 16(5) and the directions of the Circular no.GST29/2024 dated 22.11.2024 (Annexure-L) and pass an order accordingly;

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f) Issue any other writ or direction as deemed fir by this Hon’ble Court in the interest of justice and equity.”

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Heard learned counsel for the petitioner and

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learned AGA for the respondents and perused the material on record.

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A perusal of material on record will indicate that

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pursuant to notice in Form GST ASMT-10 dated 03.01.2022, the 2nd respondent issued an intimation notice under Form

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4 - NC: 2025:KHC:54073 WP No. 37299 of 2025

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HC-KAR

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GST DRC-01A dated 21.10.2022, to the petitioner, who did not issue any reply/response to the same. Subsequently, the second respondent issued a show-cause notice dated 19.12.2022 under Section 73 of the CGST/KGST Act, 2017 alleging that the input tax credit availed and utilised is ineligible to claim by the petitioner. Since the petitioner did not submit his reply to the said show-cause notice also, the 2^nd respondent proceeded to pass the impugned order dated 08.02.2023 under Section 73(9) of the KGST Act, 2017 confirming the total demand of Rs.1,00,82,330/- 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, the petitioner couldn't submit replies/ documents to neither the pre-intimation notice nor the show-cause notice under section 73 of the CGST/KGST Act, 2017 and resultantly couldn’t contest the proceedings. Upon gaining knowledge of the same, the petitioner filed an appeal on 20.08.2023 which was dismissed as barred by limitation vide impugned order

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5 - NC: 2025:KHC:54073 WP No. 37299 of 2025

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HC-KAR

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dated 30.08.2025. It is submitted that since the GST Appellate Tribunal has not been constituted as on today, the petitioner has no option but to approach 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 show-cause notice and contest the proceedings was due to bonafide reasons, unavoidable circumstances and

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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 AGA 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 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. So

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HC-KAR

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also, the appeal filed by the petitioner before the 1^st respondent has been dismissed as barred by limitation.

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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 orders dated 08.02.2023 and 30.08.2025 respectively, remitting the matter back to the 2^nd respondent for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned show-cause notice dated 19.12.2022.

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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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NC: 2025:KHC:54073 WP No. 37299 of 2025

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HC-KAR

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(ii) The impugned order dated 08.02.2023 passed by the 2^nd respondent under 73 of the KGST Act, 2017 at Annexure – F1 and Summary of the order at Annexure – F2 as well as impugned order dated 30.08.2025 passed by the 1^st respondent under Section 107(11) of the SGST/CGST Act, 2017 at Annexure – M and the recovery notice dated 18.11.2025 at Annexure – N are hereby set aside.

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(iii) The matter is remitted back to the 2^nd respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 19.12.2022 issued under section 73 of the CGST/KGST Act, 2017 at Annexure – E.

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(iv) The petitioner is directed to appear before the 2^nd respondent on 02.02.2026 without awaiting further notice from the 2^nd respondent.

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HC-KAR

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(v) The liberty is reserved in favour of the

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petitioner to submit replies, documents etc., which shall be considered by the 2^nd 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 2^nd respondent on 02.02.2026 as stated supra, present order shall stand automatically

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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.: 11

Aepl Infrastructure Private Limited v. Joint Commissioner of Commercial Taxes

Case brief

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Aepl Infrastructure Private Limited v. Joint Commissioner of Commercial Taxes

Case brief

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