Paxal Fuel Corporation Vs Deputy Commissioner of Commercial Taxes (Karnataka High Court)
The Karnataka High Court partly allowed a writ petition challenging an adjudication order dated 23.12.2025 passed under Section 73(9) of the Central Goods and Services Tax Act, 2017. The petitioner contended that although the order stated that the Show Cause Notice (SCN) had been sent to its registered email address, the notice was neither sent to that email address before the adjudication nor made available on the portal until after the order was passed.
The State submitted that the Assessing Officer had also recorded unsuccessful attempts to contact the petitioner through known telephone numbers. The Court observed that the adjudication order was essentially based on the petitioner’s failure to respond to the SCN, while the petitioner consistently asserted that the SCN had not been served through its registered email.
Holding that the petitioner must be afforded a real opportunity to respond before being subjected to a demand of more than Rs.1,13,40,548 towards tax, interest, and penalty, the Court quashed the adjudication order. The proceedings were restored to the Assessing Officer, with liberty granted to the petitioner to file a detailed response to the SCN by 06.07.2026, leaving all issues open for fresh consideration.
