MD Engineers Vs Assistant Commissioner of Commercial Taxes (Karnataka High Court)
The Karnataka High Court allowed the writ petition and quashed the ex parte adjudication order dated 20.06.2024 passed under Section 73 of the Karnataka Goods and Services Tax Act, 2017. The proceedings had commenced with Form GST DRC-01A dated 01.02.2024 and a Show Cause Notice dated 22.03.2024. The petitioner sought an additional opportunity, stating that the proprietor could not respond to the notices due to the death of his wife in 2022 and his own health conditions requiring constant medical care, supported by medical records. The petitioner also submitted that the proceedings arose from an alleged mismatch between GSTR-3B and GSTR-2A returns and undertook to produce evidence explaining the mismatch as permissible under the relevant Circular. The High Court found the explanation for non-participation to be bona fide and held that the petitioner should be given an opportunity to explain the differences in the documents. Accordingly, the Court quashed the adjudication order, restored the proceedings to the adjudicating authority, and granted liberty to the petitioner to file its response and additional documents within the time specified by the Court.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
The petitioner, a proprietary concern and a registered taxpayer under the Karnataka Goods and Services Tax Act, 2017 [for short, ‘the Act’], has called in question the Adjudication Order dated 20.06.2024 [Annexure-A] under Section 73 of the Act read with the relevant Rules. The impugned order is an ex parte order, and the proceedings are begun with the intimation in Form GST DRC-01A on 01.02.2024 and are concluded after the Show Cause Notice dated 22.03.2024.
