Karnataka High Court
M/S V.V. Cartoons vs The Assistant Commissioner Of on 24 September, 2024
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2024:KHC:39614
WP No. 25397 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 24TH DAY OF SEPTEMBER, 2024
BEFORE
THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION NO.25397 OF 2024 (T-RES)
BETWEEN:
1. M/S. V.V. CARTOONS,
(REPRESENTED BY ITS
PROPRIETOR VYSHALI),
7/2/550, SHARADAMMA SOCIETY COMPOUND,
NEAR CANARA BANK,
HEGGANAHALLI CROSS,
PEENYA 2ND STAGE,
BENGALURU URBAN-560091.
...PETITIONER
(BY SRI. SANMATHI E.I., ADVOCATE)
AND:
1. THE ASSISTANT COMMISSIONER OF
COMMERCIAL TAXES, (AUDIT)-6.8,
Digitally signed DGSTO-06, BENGALURU.
by DEVIKA M
Location: HIGH 2. DEPUTY COMMISSIONER OF COMMERCIAL TAXES,
COURT OF
KARNATAKA GANDHINAGAR, BENGALURU.
...RESPONDENTS
(BY SRI. HEMAKUMAR K, AGA)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER
PASSED BY R1 ALONG UNDER SECTION 73(9) OF KGST/CGST ACT,
2017 FOR PERIOD 2019-20 APRIL 2019 TO MARCH 2020) BEARING
NO.DGSTO-06/AC9A)-6.8/ADJ/S.73/ORDER-58/2024-25, CASE NO.ID
AUDIT/5301/2023-24 DATED 27.2.2024 PASSED ON 21.8.2024
(PRODUCED AS ANNEXURE-A).
THIS PETITION COMING ON FOR ORDERS THIS DAY, ORDER
WAS MADE THEREIN AS UNDER:
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NC: 2024:KHC:39614
WP No. 25397 of 2024
CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
ORAL ORDER
In this petition, the petitioner seeks the following reliefs:
(i) Issue writ of certiorari or writ in the nature of certiorari quashing the order passed by first respondent along under Section 73(9) of KGST/CGST Act, 2017 for period 2019-20 (April 2019 to March 2020) bearing No.DGSTO-
06/AC9A)-6.8/ADJ/S.73/Order-58/2024-25, Case No.ID Audit/5301/2023-24 dated 27.2.2024 passed on 21.8.2024 (produced as Annexure-A).
(ii) To issue any other writ or direction or to grant such other relief or reliefs as deemed fit under the facts and circumstances of this case, including the cost.
2. Heard the learned counsel for the petitioner and the learned Additional Government Advocate for the respondents.
3. A perusal of the material on record would indicate that pursuant to the proceedings initiated by respondent No.1 by issuance of notice under Section 73(9) of the KGST Act, the petitioner did not submit a reply and the petitioner has submitted an explanation in this regard by stating that the said show cause notice was not received by him and he was not in a position to submit a -3- NC: 2024:KHC:39614 WP No. 25397 of 2024 suitable reply and his deliberate omission to do so was due to bonafide reasons, unavoidable circumstances and sufficient cause. It is submitted that the petitioner has a good defence to urge to the show cause notice and if one more opportunity is granted to the petitioner by setting aside the impugned exparte order dated 21.08.2024, the petitioner would submit a suitable reply to the show cause notice and contest the proceedings in accordance with law. The learned counsel for the petitioner also submits that though the petitioner has filed the rectification application, in the event the impugned order is set aside and the matter is remitted back to respondent No.1 for re-consideration afresh, the petitioner would unconditionally withdraw the rectification application.
4. Per contra, the learned Additional Government Advocate would support the impugned order and submit that there is no merit in the petition and that the same is liable to be dismissed.
5. A perusal of the impugned order on adjudication at Annexure-A would indicate that the same is clearly an exparte order pursuant to the show cause notice dated 21.05.2024 not having been replied to by the petitioner who had not contested the said proceedings. Under these circumstances, in the light of the specific -4- NC: 2024:KHC:39614 WP No. 25397 of 2024 assertion on the part of the petitioner that his inability and omission to submit a reply to the show cause notice and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause, I deem it just and appropriate to adopt the justice oriented approach and set aside the impugned order and remit the matter back to respondent No.1 for re- consideration afresh in accordance with law to the stage of submitting the reply to the show cause notice.
6. In the result, I pass the following:
ORDER
(i) The petition is hereby allowed.
(ii) The impugned order at Annexure-A dated 21.08.2024, is hereby set aside.
(iii) The matter is remitted back to respondent No.1 for re-consideration afresh in accordance with law.
(iv) The petitioner shall submit a reply along with the documents to the show cause notice dated 21.05.2024 and respondent No.1 shall provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law.
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NC: 2024:KHC:39614 WP No. 25397 of 2024
(v) The petitioner undertakes to appear before respondent No.1 on 14.10.2024 without awaiting further notice.
Sd/-
(S.R.KRISHNA KUMAR) JUDGE MD List No.: 1 Sl No.: 27