Pathways Marketing and Consulting Group Vs Assistant Commissioner of Commercial Tax (Karnataka High Court)
The Karnataka High Court disposed of a writ petition challenging two adjudication orders relating to assessment years 2020-21 and 2021-22. The petitioner sought relief against ex-parte adjudication orders passed by the commercial tax authorities.
With respect to the adjudication order for the year 2020-21 (Annexure-A1), the petitioner contended that the order had been passed ex parte on the basis of an alleged discrepancy between GSTR-3B and GSTR-2A returns. The petitioner submitted that if an opportunity were granted, it would be able to demonstrate that no such discrepancy actually existed.
The Court examined the adjudication order and noted that the authority had completed the proceedings after observing discrepancies between GSTR-3B and GSTR-2A and recording that the taxpayer had failed to submit a reply despite opportunities being granted.
Taking note of the fact that the order was passed ex parte and considering the petitioner’s stand that supporting material was available to establish absence of discrepancies, the Court held that it would be appropriate to set aside the order. Accordingly, the adjudication order at Annexure-A1 was quashed and the matter was remitted back to the stage of reply to the show cause notice.
