Presidency Builders And Developers Vs Deputy Commissioner of Commercial Taxes (Karnataka High Court)
Karnataka HC Sets Aside Ex-parte GST Order Directs Fresh Consideration by a Different Officer
This writ petition was filed by M/s Presidency Builders & Developers challenging the SCN dated 15.07.2023 issued u/s 73(1) of the KGST/CGST Act, the ex-parte Order-in-Original dated 23.12.2023, & the consequential recovery proceedings.
The Assessee was represented by Sri. Pranaav G. Ambedkar, for Smt. Akhileshwari & Sri. Sachin S. Nayak, Advocates. The Assessee submitted that due to bona fide reasons & unavoidable circumstances, it could not file a reply to the SCN, leading to an ex-parte OIO. It was further contended that the same DCCT (Audit-3) had earlier issued an audit observation on 20.03.2023 (to which reply was given on 28.03.2023), and thereafter illegally proceeded to issue the SCN & pass the impugned order, which was without jurisdiction.
The State, represented by the learned AGA, submitted that the ex-parte OIO may be set aside & remanded. It also assured the Court that upon remand, the case would be handled by an officer other than the DCCT (Audit-3).
Accepting these submissions, the High Court held that the ex-parte order & the related recovery proceedings were unsustainable. The Court set aside the impugned OIO & directed the Joint Commissioner to assign the matter to a proper officer other than the one who earlier passed the order. The matter was remitted from the stage of reply to the SCN dated 15.07.2023. Full liberty was granted to the Assessee to raise all contentions, including jurisdictional objections relating to the audit process.
The Assessee was directed to appear before the concerned officer on 08.12.2025, failing which the present order would automatically stand recalled. The new officer was directed to provide sufficient & reasonable opportunity to the Assessee & complete the proceedings strictly in accordance with law.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
