Karnataka HC Restores GST Registration as Notices Were Sent to Inaccessible Email Account

Anish J. Dass Vs Assistant Commissioner of Commercial Taxes (Karnataka High Court)

The Karnataka High Court examined a challenge to an order passed under Section 73(9) of the KGST/CGST Act. The petitioner submitted that an ex-parte order had been passed because communications were sent to an email ID that could not be accessed after default in payment for the email subscription. The dispute related to discrepancies in Form ASMT-10, where the petitioner had allegedly failed to furnish export invoices and reconciliation statements correlating export invoices with corresponding FIRC/BRC documents.

The petitioner contended that the relevant documents were available and sought an opportunity to file a reply to the show cause notice. The Court noted the petitioner’s explanation regarding non-communication of proceedings and also observed that the quantified demand involved a small amount. Taking into account the petitioner’s assertion that reconciliation materials were available, the Court held that the matter required fresh consideration.

Accordingly, the Court set aside the impugned order and remitted the matter to the stage of reply to the show cause notice. The petitioner was directed to appear before the respondent on 25.05.2026 without further notice. The Court also ordered restoration of the petitioner’s GST registration consequent to setting aside of the impugned order.

FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT

Learned High Court Government Pleader accepts notice for respondent.

2. Petitioner has challenged the validity of the order at Annexure-A passed under Section 73(9) of the KGST / CGST Act.

3. Petitioner submits that he has suffered an ex-parte order in light of communication being addressed to the email ID furnished which however could not be accessed as it was a paid e-mail account and there was default by the petitioner insofar as such subscription is concerned. It is submitted that the premise on which the order is passed is the discrepancy in Form ASMT-10 and petitioner had not replied to clarify such discrepancy. It is submitted that petitioner was required to furnish export invoices and also reconciliation statement of export invoices and corresponding FIRC / BRC received in the requisite format.

4. It is submitted that petitioner is in possession of the relevant documents and would meet the grounds raised in the show cause notice. Accordingly, it is submitted that the impugned order may be set aside and the matter may be remitted to the stage of reply to the show cause notice and the petitioner would take his stand by filing reply to the show cause notice. It is submitted that the lapse may be condoned.

5. Perused the order at Annexure-A. It is also noticed that the quantification of demand is a small amount. Taking note of the submission of the petitioner regarding non-communication of the proceedings, for the reasons as observed above, it would be appropriate to remit the matter for fresh consideration. Such course of action is required to be followed as petitioner submits that he has material to indicate reconciliation between export invoices and the corresponding FIRC/BRC.

6. Accordingly, the order at Annexure-A is set aside. The matter is remitted to the stage of reply to the show cause notice.

7. Petitioner to appear before respondent without further notice on 25.05.2026. All contentions are kept open.

8. Noticing the submission that GST registration has been cancelled, in light of setting aside of the order at Annexure-A, the GST registration of the petitioner to be restored forthwith.

9. In light of the above, petition is disposed of.