- 1 - HC-KAR NC: 2025:KHC:32698 WP No. 22839 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 22839 OF 2025 (T-RES) BETWEEN: M/S SRI GANESHA ENTERPRISES NO.5/2, MAHADEVAPURA POST, OUTER RING ROAD NEAR INDIAN OIL PETROL BUNK, MAHADEVAPURA, BENGALURU - 560 048 REPRESENTED BY ITS PROPRIETOR, SRI. SHANKAR K C/O SRI KANAKKAN, AGED ABOUT 43 YEARS …PETITIONER (BY SRI. SHREEHARI KUTSA, ADVOCATE) AND: 1. DEPUTY COMMISSIONER OF COMMERCIAL TAX OF COMMERCIAL TAX (AUDIT)-5.9, VTK-2, B-BLOCK, 6TH FLOOR, ROOM NO.601, KORAMANGALA BENGALURU - 560 047 AND ANR. 2. COMMISSIONER OF COMMERCIAL TAXES (KARNATAKA), BENGALURU Digitally signed by NAGAVENI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:32698 WP No. 22839 of 2025 VANIJYA TERIGE KARYALAYA 2, NEAR KHB GAMES VILLAGE, 80 FT. ROAD, KORAMANGALA, BENGALURU - 560 095. 3. THE BRANCH MANAGER, IDBI BANK, NO.17, GROUND FLOOR, ASHIRWAD TOWERS, DODDANEKUNDI JUNCTION, K.R. PURAM RING, MARATHHALLI, BENGALURU - 560 037. …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA FOR R1 AND R2) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF TE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER UNDER SECTION 74(9) DATED 19/07/2024 BEARING FILE NO. DGSTO-5/DC-5.9/ADJ-25/2024-25 FOR THE PERIOD 2019-20 ALONG WITH SUMMARY OF ORDER IN FORM GST DRC-07 BEARING REF. NO. ZD290724061864W ISSUED BY RESPONDENT NO.1 AND ENCLOSED AS ANNEXURE F AND ANNEXURE F1 RESPECTIVELY AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:32698 WP No. 22839 of 2025 CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioner is before this court calling in question an order dated 14.05.2024, 19.07.2024 and notice dated 25.06.2025 passed by respondent No.1 - Deputy Commissioner of Commercial Tax (Audit). 2. Heard Shri Shreehari Kutsa, learned counsel appearing for the petitioner and Shri K. Hema Kumar, learned Additional Government Advocate appearing for respondents No.1 and 2. 3. The petitioner is an enterprise, which is registered with the GST. Certificate of registration is granted on 25.09.2019. The petitioner is said to have received an enforcement report from respondent No.1 - the Deputy Commissioner of Commercial Tax (Audit). On 28.11.2019, 4 years thereafter, an issue of intimation of tax is issued by respondent No.1 in the prescribed form, which follows with a show cause notice dated 14.05.2024 and an order dated 19.07.2024. The petitioner aggrieved by the afore-quoted show - 4 - HC-KAR NC: 2025:KHC:32698 WP No. 22839 of 2025 cause notice dated 14.05.2024 and the consequent order is before this court. 4. The learned counsel appearing for the petitioner inter alia contends that the determination by respondent No.1 is ex-parte. The learned counsel appearing for the petitioner submits that the petitioner has neither received the show cause notice nor the impugned order. Respondent No.1 without hearing the petitioner and on independent application of mind has passed the illegal order. The order under Section 74(9) of the KGST/CGST Act, 2017 suffers from the want of application of mind. He would contend that the order is bad in law for it being in violation of principles of natural justice. He would submit that another opportunity must be given to the petitioner, in the light of the fact that it is an ex-parte order. 5. Per contra, learned Additional Government Advocate would contend that if the petitioner is wanting to submit on merits, he would file his statement of objections, but admits the fact that the petitioner did not participate in the proceedings. - 5 - HC-KAR NC: 2025:KHC:32698 WP No. 22839 of 2025 6. In the light of the admitted circumstance of the petitioner not receiving the show cause notice nor the impugned order, which has led to further proceedings being taken against the petitioner, I deem it appropriate to dispose the petition, remitting the matter back to the hands of respondent No.1 to the stage of show cause notice directing the petitioner to furnish his reply to the said notice and respondent No.1 to take the matter to its logical conclusion by regulating its procedure and keeping all the other contentions open to be urged before the authority or before the appropriate fora. 7. 7. For the aforesaid reasons, the following ORDER (i) The writ petition is allowed-in-part. (ii) The matter is remitted back to the hands of respondent No.1 from the stage of show cause notice. (iii) The petitioner is permitted to submit his reply to the show cause notice dated 14.05.2024, within an outer limit of four weeks from the date of receipt of copy of the subject order. - 6 - HC-KAR NC: 2025:KHC:32698 WP No. 22839 of 2025 (iv) Respondent No.1 then shall regulate its procedure and take the issue to its logical conclusion. (v) In the light of the fact that the impugned proceedings are ex-parte, the impugned notices and consequent orders shall stand quashed. (vi) All contentions except the one answered during the course of the order shall remain open. Sd/- (M.NAGAPRASANNA) JUDGE JY List No.: 1 Sl No.: 26 CT: BHK