Tech Desire Infra Private Limited Vs Commissioner of Commercial Taxes (Karnataka High Court)
Ex Parte GST Cancellation Orders Remanded Due to Duplicate Tax Demands; Karnataka HC Orders Fresh Hearing After Finding Alleged Duplication in GST Adjudication Orders; GST Orders Passed Without Hearing Taxpayer Set Aside by Karnataka High Court; Karnataka HC Grants Fresh Opportunity in GST ITC Mismatch Case Due to Ex Parte Orders.
The petitioner challenged adjudication orders passed under Section 73 of the CGST/KGST Act. The petitioner contended that two separate orders at Annexures-A and C series were passed for the same tax period on the same issue relating to mismatch of Input Tax Credit (ITC). It was further submitted that the order at Annexure-B1 concerned discrepancies between GSTR-1 and GSTR-3B returns.
The petitioner argued that all the impugned orders were passed ex parte and sought an opportunity to file replies to the show cause notices. It was submitted that the failure to respond earlier was bona fide because the GST registration had already been cancelled in 2023.
The State contended that notices had been duly served, as reflected in the impugned orders, and therefore the petitioner was responsible for non-participation in the proceedings.
The Karnataka High Court observed that the petitioner had specifically alleged duplication of orders for the same tax period under Annexures-A and C series. The Court also noted that all the impugned orders had admittedly been passed ex parte. Considering the petitioner’s assertions and the factual issues involved, the Court held that the matter required reconsideration after granting the petitioner an opportunity to place material before the authority.
