Fortuna Energy Infrastructures Vs the Assistant… — Writ and Judicial Review | Karnataka HC (2026)

Fortuna Energy Infrastructures Vs the Assistant… — Writ and Judicial Review | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Writ petition allowed: Order-in-Original No. 55/2024-25 dated 27.02.2025 (Annexure-A) set aside and matter remitted to the respondent Authority for re-consideration; recovery notice dated 05.01.2026 (Annexure-B) also set aside; petitioner permitted to make an additional reply and to avail personal hearing; petitioner directed to appear before respondent No.1 on 05.05.2026 without waiting for further notice; all contentions kept open.

Issue for consideration

Whether the Order-in-Original dated 27.02.2025 (Annexure-A), passed ex-parte without taking note of the petitioner's reply to the show cause notice acknowledged on 07.02.2025 (Annexure-D), was sustainable and liable to be set aside.

Court's answer

Although the respondent Authority recorded that the petitioner had neither furnished a written reply to the show cause notice nor appeared for the personal hearing, Annexure-'D' evidences a reply duly acknowledged on 07.02.2025; accordingly, the impugned order required to be set aside for having not taken note of the petitioner's reply.

Ratio / Principle

The Order-in-Original at Annexure-'A' dated 27.02.2025 is set aside and the matter is remitted to the respondent Authority for re-consideration; the Authority may re-look into the petitioner's reply, and the petitioner is permitted to make an additional reply and to avail the opportunity of personal hearing.

Key takeaways

Consequent to the setting aside of the Order-in-Original at Annexure-'A' dated 27.02.2025, the recovery notice at Annexure-'B' dated 05.01.2026 is also set aside.ratio¶38
The petitioner is directed to appear before respondent No.1 on 05.05.2026 without waiting for further notice, and all contentions are kept open.ratio¶40

Detailed headnote1 paragraphs

Karnataka High Court (S Sunil Dutt Yadav J) allowed a writ petition under Articles 226 and 227 of the Constitution filed by Fortuna Energy Infrastructures, a partnership firm, challenging Order-in-Original No. 55/2024-25 [DIN 20250257YU0000 82525E] dated 27.02.2025 passed ex-parte by the Assistant Commissioner of Central Tax, West Division-5, Bengaluru. Although the Authority recorded that the petitioner had neither furnished a written reply to the show cause notice nor appeared for personal hearing, the petitioner's reply (Annexure-D) was on record, duly acknowledged on 07.02.2025. Holding that the impugned order was passed without taking note of the reply, the Court set aside the Order-in-Original and the consequential recovery notice dated 05.01.2026 (Annexure-B), remitted the matter to the respondent Authority for re-consideration, permitted the petitioner to file an additional reply and avail personal hearing, and directed the petitioner to appear before respondent No.1 on 05.05.2026 without waiting for further notice, keeping all contentions open.

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NC: 2026:KHC:19394 WP No. 7614 of 2026

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 7^TH DAY OF APRIL, 2026

BEFORE

THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 7614 OF 2026 (T-RES)

BETWEEN:

FORTUNA ENERGY INFRASTRUCTURES A PARTNERSHIP FIRM REPRESENTED BY ITS AUTHORIZED SIGNATORY SHRI PRAKASH NAIK SON OF SHRI MUKKANNA NAIK AGED ABOUT 35 YEARS HAVING OFFICE AT GROUND FLOOR NO. 28, HOTEL FORTUNER PALACE SHESHADRI ROAD, NEXT TO VRL BUS STOP ANAND RAO CIRCLE, BENGALURU-560 009 EMAIL: [email protected] PHONE: 91 8971470774

… PETITIONER

(BY SRI. PRADYUMNA HEJIB., ADVOCATE)

Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA

AND:

THE ASSISTANT COMMISSIONER OF CENTRAL TAX WEST DIVISION-5, BENGALURU WEST COMMISSIONERATE, BMTC BUS STAND COMPLEX DEPOT, 1^ST FLOOR, TTMC BUILDING BANASHANKARI, BENGALURU-560 070

THE SUPERINTENDENT OF CENTRAL TAX, BWD-5 RANGE WEST DIVISION-5 BMTC BUS STAND COMPLEX DEPOT, 1^ST FLOOR, TTMC BUILDING BANASHANKARI, BENGALURU-560 070

… RESPONDENTS

(BY SRI. AKASH SHETTY B., ADVOCATE)

2 - NC: 2026:KHC:19394 WP No. 7614 of 2026

HC-KAR

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH ORDER-INORIGINAL NO. 55/2024-25 [DIN 20250257YU0000 82525E] DATED 27.02.2025 PASSED BY THE FIRST RESPONDENT [ANNEXURE-A] AND ETC.

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

CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

ORAL ORDER

The petitioner has challenged the Order-in-Original at

Annexure-'A' dated 27.02.2025. The Order-in-Original is an ex-parte order as is made out from the observations at

para-6 of the order.

It is the case of the petitioner that the reply was made to the show cause notice as is evidenced from Annexure-'D', which is reply to the show cause notice duly acknowledged and that having been filed on 07.02.2025, the ex-parte order at Annexure-'A' is passed on 27.02.2025. Accordingly, it is submitted that the

Authority has grossly erred in proceeding to pass an ex-parte order without taking note of the reply at Annexure-'D'.

NC: 2026:KHC:19394 WP No. 7614 of 2026

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HC-KAR

Perused the order at Annexure-'C' dated 27.11.2024. The findings at para-6 does indicate that the respondent Authority has placed the petitioner ex-parte and concluded the adjudication. The respondent Authority has recorded a finding that the petitioner has neither furnished written reply to the show cause notice nor appeared to avail of the opportunity of personal hearing, however, Annexure-'D' refers to the reply made which is duly acknowledged by the Office of the Principal Commissioner of Central Tax, Bengaluru, West Commissionerate as per the order dated 07.02.2025. If that were to be so, the order impugned requires to be set aside for having not taken note of the reply of the petitioner.

In light of the above, the order at Annexure-'A' dated 27.02.2025 is set aside and the matter is remitted to the respondent Authority for re-consideration. The respondent Authority may re-look into the reply of the petitioner and in light of the matter being remanded, the

4 - NC: 2026:KHC:19394 WP No. 7614 of 2026

HC-KAR

petitioner is permitted to make an additional reply. Further, the petitioner is to avail of the opportunity of personal hearing and proceed with the matter.

Consequent to the setting aside of the

Order-in-Original at Annexure-'A' dated 27.02.2025, the recovery notice at Annexure-'B' dated 05.01.2026 is also set aside.

In light of the setting aside of the

Order-in-Original at Annexure-'A' dated 27.02.2025 and directing re-consideration, the petitioner to appear before the respondent No.1 on 05.05.2026 without waiting for

further notice. All contentions are kept open.

Sd/(S SUNIL DUTT YADAV) JUDGE

VGR