Bhoo Developers Vs DCIT (Karnataka High Court)
The petitioner challenged an order passed under Section 73(9) of the KGST Act, 2017, where adjudication proceedings resulted in a demand based on audit findings relating to non-payment of GST and development charges to the landowner. The authority had noted that despite multiple opportunities, the petitioner failed to respond to the show cause notice and proceeded to confirm the demand accordingly.
The petitioner submitted that the failure to reply was due to bona fide lapses and requested an opportunity to respond, citing potential financial prejudice if the order remained in force. The respondent contended that the show cause notice had been duly served and that the petitioner was responsible for not participating in the proceedings.
Upon reviewing the matter, the High Court observed that proper adjudication required consideration of both legal and factual aspects, which necessitated a response from the petitioner. Taking note of the circumstances, the Court held that an opportunity to reply could be granted, subject to conditions.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
The petitioner has called in question the validity of the order at Annexure-A, whereby the authority has completed adjudication proceedings under Section 73(9) of the KGST Act, 2017 and raised a demand.
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