G.S. And Company Vs State of Karnataka (Karnataka High Court)
The petitioner filed an interlocutory application seeking amendment of the petition to challenge an adjudication order passed under Section 73(9) of the Karnataka Goods and Services Tax Act, 2017. The Court allowed the application and permitted filing of the amended petition.
The impugned adjudication order was passed ex-parte, as the petitioner had not submitted any reply to the show-cause notice. Subsequently, the petitioner sought rectification of the adjudication order, which was rejected. An appeal against the rejection of rectification was also filed and remained pending. However, the petitioner expressed willingness to withdraw the appeal and requested the Court to remand the matter for reconsideration.
The adjudication authority had concluded that the petitioner had claimed excess input tax credit (ITC), noting discrepancies between GSTR-1 and GSTR-3B returns. The order was passed based on the material available with the authority.
Before the Court, the petitioner submitted that taxes had been paid and sought condonation of lapse, requesting an opportunity to respond to the show-cause notice and address the discrepancies alleged by the department.
The Court observed that the adjudication order was passed ex-parte and held that the matter required reconsideration. Accordingly, the Court set aside the order dated 20.02.2025 passed under Section 73(9) and remitted the matter to the concerned authority for fresh adjudication. The petitioner was permitted to file a reply to the show-cause notice and present its case.
