Reliflex Exim Services (OPC) Pvt. Ltd. Vs Assistant Commissioner of Commercial Taxes (Karnataka High Court)
The matter before the Karnataka High Court concerned a challenge to two adjudication orders passed under Section 73 of the CGST/KGST Acts for the financial year 2019–2020. The petitioner sought to set aside orders dated 21.04.2023 and 28.08.2024, which were passed ex-parte due to non-filing of a reply to the show-cause notice. The petitioner submitted that the failure to respond was due to circumstances beyond its control, including the COVID-19 pandemic, and requested an opportunity to present its case.
The dispute involved rejection of Input Tax Credit (ITC). In one order, the claim was denied as belated under Section 16(4) of the Karnataka Goods and Services Tax Act, 2017. In the other, the authority noted excess ITC claimed in Form GSTR-3B compared to Form GSTR-2A. The petitioner argued that such discrepancies required reconciliation and could be addressed with supporting material.
The Court considered the submissions and noted that the petitioner was willing to appear before the authority and contest the issues raised. Taking into account the undertaking to deposit 10% of the disputed tax to safeguard revenue interests, the Court found it appropriate to set aside both impugned orders. The matter was remitted back to the stage of replying to the show-cause notice, thereby granting the petitioner an opportunity for fresh adjudication.
