Sibu Prasad Praharaj Vs Commercial Tax Officer (Karnataka High Court)
In the matter of Sibu Prasad Praharaj vs. Commercial Tax Officer, the petitioner challenged an ex-parte order issued by the respondent under Section 73 of the KGST Act, 2017, confirming a tax demand of Rs. 14,07,686, including tax, interest, and penalty. The petitioner had responded to a pre-intimation notice under Form GST DRC-01A dated 12.09.2023 but did not submit a reply to the subsequent show-cause notice dated 07.05.2024, resulting in the ex-parte confirmation of the demand on 28.05.2024.
The petitioner contended that the failure to respond to the show-cause notice was due to bona fide reasons and unavoidable circumstances. Specifically, the petitioner’s father was suffering from prostate cancer, requiring frequent travel to Odisha and treatment arrangements in Bangalore. As a result, the petitioner could not monitor the portal or submit the necessary replies. The petitioner sought relief by requesting the High Court to set aside the impugned order and allow an opportunity to submit a reply to contest the proceedings.
The respondent opposed the petition, arguing that there was no merit in revisiting the ex-parte order. The Karnataka High Court, after considering the material on record and the submissions of both sides, observed that the petitioner’s failure to respond was due to genuine personal difficulties, constituting sufficient cause for non-compliance. Emphasizing a justice-oriented approach, the Court held that it was appropriate to provide the petitioner an additional opportunity to present their case.
