Nakoda Auto Distributors Vs Assistant Commissioner of Commercial Tax (Karnataka High Court)
The Karnataka High Court addressed a petition filed by Nakoda Auto Distributors challenging an ex-parte order issued by the Assistant Commissioner of Commercial Tax under the Karnataka Goods and Service Tax (KGST) Act, 2017. The petitioner’s counsel submitted that the partners of the firm, who are brothers, were unable to respond to the show-cause notices issued in September 2023 or participate in the subsequent proceedings due to the severe illness of their father, who was diagnosed with cancer in April 2023 and was frequently hospitalized. The counsel further informed the court that their father passed away in February 2024, providing a death certificate as evidence. Consequently, the petitioner sought an opportunity to file objections and participate in the proceedings under Section 73 of the KGST Act. The Additional Government Advocate representing the respondent argued that the notices were issued lawfully and the authority was justified in proceeding ex-parte due to the lack of response.
Upon reviewing the case and the medical records presented, the Karnataka High Court found merit in the petitioner’s plea. The court noted the documentary evidence establishing the father’s prolonged illness and eventual demise during the period when the GST notices were issued and the ex-parte order was passed. Acknowledging the difficult circumstances faced by the petitioner, the court deemed it appropriate to provide an opportunity for them to present their case. Consequently, the court quashed the ex-parte order and related summary and consequential orders. The court granted Nakoda Auto Distributors thirty days to file their objections to the original show-cause notices and directed them to appear before the respondent authority on March 6, 2025. The court also clarified that since the matter was being remitted due to these specific circumstances, the petitioner should not raise any issues of limitation. Finally, the court stated that any amount recovered through attachment would be subject to the final order passed by the respondent authority after considering the petitioner’s objections.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
