- 1 - HC-KAR NC: 2025:KHC:47211 WP No. 23369 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 23369 OF 2025 (T-RES) BETWEEN: SRI. PRASANNA KUMAR H K AGED ABOUT 53 YEARS, S/O H D KRISHNAPPA, CIVIL WORKS CONTRACTOR, RESIDING OPP. ANNAPURNESHWARI KALYANA MANTAPA, NEAR DENTAL COLLEGE 2ND STAGE, M G ROAD, VIDYANAGAR, HASSAN-573 201. …PETITIONER (BY SRI. NAVEEN G.S., ADVOCATE) AND: THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES., LOCAL GOODS SERVICE TAXES OFFICE-240 SWAMY ARCADE, I FLOOR, OPP. TO HDFC BANK, KUVEMPU NAGAR, HASSAN-573 201. …RESPONDENT (BY SRI. K. HEMA KUMAR, AGA) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH / SET ASIDE THE ASSESSMENT ORDER PASSED UNDER SECTION 38(5)(A) DATED 11.09.2023 BY THE RESPONDENT AND PRODUCED AS ANNEXURE-D AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR Digitally signed by MADHURI S Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:47211 WP No. 23369 of 2025 ORAL ORDER In this petition, petitioner seeks the following reliefs: “(i) Issue a writ or such other order in the nature of Certiorari to quash / set aside the assessment order passed under section 38(5)(a) dated 11.09.2023 bearing No. ACCT/LVO-240/HSN/K-VAT Asst/38(5)/01/2023-24 by the Respondent and produced as Annexure-D; and (ii) Issue a writ or such other order in the nature of Certiorari to quash / set aside the demand notice dated 11.09.2023 in Form VAT 180 bearing No. ACCT/LVO- 240/HSN/K-VAT by the Asst/38(5)/F-180/01/2023-24 passed Respondent and produced as Annexure- D-1; and (iii) Issue a writ or such other order in the nature of Certiorari to quash / set aside the Application under Section 42(9) (c) dated 04.05.2024, issued by Respondent and produced as Annexure- C; and (iv) Pass such other orders as this Hon'ble Court deems fit to grant in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record. 3. A perusal of material on record will indicate that the respondent issued a pre-assessment notice under Section 38(5)(a), 72(5) and 36(1) of the KVAT Act, 2017 dated 25.07.2023 - 3 - HC-KAR NC: 2025:KHC:47211 WP No. 23369 of 2025 to the petitioner proposing to levy a total demand of Rs.88,75,589/- including the tax, interest and penalty, to which the petitioner did not submit any reply. Subsequently, the respondent issued an Endorsement dated 21.08.2023, to which also the petitioner did not submit any reply and therefore, the respondent proceeded to pass the impugned ex-parte assessment order dated 11.09.2023 under Section 38(5)(a), 72(5) and 36(1) of the KVAT Act confirming the total demand of Rs.88,75,589/- including the tax, interest and penalty. Subsequently, the respondents filed an application under Section 42(9)(c) of the KVAT Act before the Court of the Civil Judge and JMFC, Hassan in C.Misc No.547/2024 for recovery of the said demand. 4. Aggrieved by the aforesaid impugned order and the recovery proceedings, the petitioner has no option but to approach this Court by way of the present petition interalia contending that the inability and omission on the part of the petitioner to submit a reply to the notices and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause and submits that if one more opportunity is provided, by setting - 4 - HC-KAR NC: 2025:KHC:47211 WP No. 23369 of 2025 aside the impugned order, the petitioner would submit a reply to the show-cause notice and contest the proceedings. 5. Per contra, learned AGA for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 6. Though several contentions have been urged by both sides, having regard to the specific assertion on the part of the petitioner that his inability and omission to submit replies and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause, I deem it just and appropriate to adopt a justice oriented approach and provide one more opportunity to the petitioner by setting aside the impugned order dated 11.09.2023 and remitting the matter back to the respondent for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned notice dated 25.07.2023. 7. In the result, I pass the following: ORDER (i) The petition is hereby allowed. - 5 - HC-KAR NC: 2025:KHC:47211 WP No. 23369 of 2025 (ii) The impugned ex-parte order at Annexure-D dated 11.09.2023 passed by the respondent as well Notices at Annexure D1 and E dated 11.09.2023 and 30.10.2023, respectively issued by the respondent are hereby set aside. (iii) The impugned recovery proceedings pending before the Civil Judge and JMFC, Hassan in C.Misc No.547/2024 at Annexure-C and C1 are also hereby quashed. (iv) The matter is remitted back to the respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 25.07.2023. (v) The petitioner is directed to appear before the respondent on 11.12.2025 without awaiting further notice. (vi) Liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the respondent who shall provide sufficient and reasonable opportunity to the petitioner and hear them and proceed further in accordance with law. - 6 - HC-KAR NC: 2025:KHC:47211 WP No. 23369 of 2025 (vii) In the event, the petitioner does not appear before the respondent on 11.12.2025 as stated supra, the present order shall stand automatically recalled without further orders. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 2 Sl No.: 46