Arunagiri Imports And Exports Private Limited Vs State of Karnataka (Karnataka High Court)
Summary: The Karnataka High Court considered a writ petition filed by M/s. Arunagiri Imports and Exports Private Limited challenging an adjudication order dated 13.08.2024 passed under Section 73(9) of the Karnataka Goods and Service Tax Act, 2017. The petitioner also sought setting aside of the demand raised pursuant to the impugned order. The proceedings concerned the tax period 2019-20.
The petitioner contended that the respondent authority had concluded the adjudicatory proceedings by passing an ex-parte order without the benefit of any reply to the show-cause notice. According to the petitioner, its business was under loss and, due to a bona-fide lapse, it could not make out a reply to the show-cause notice. The petitioner further submitted that certain recoveries had already been made pursuant to the impugned order and requested an opportunity to take a stand on merits by filing a reply to the show-cause notice.
The petitioner asserted that, if the impugned order were set aside and an opportunity were granted, it would meet the grounds raised in the show-cause notice by placing appropriate material before the adjudicating authority.
Upon perusing the adjudication order, the Court noticed that the show-cause notice had proceeded on the premise that the petitioner had not submitted documents supporting the exempted turnover declared in GSTR3B. The authorities had also noticed that no documents had been submitted in support of the declared exempted turnover. The impugned order further recorded that the petitioner had not filed any reply and had not discharged payment voluntarily.
