- 1 - HC-KAR NC: 2025:KHC:44030 WP No. 11677 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 11677 OF 2024 (T-RES) BETWEEN: M/S SRI LAKSHMI AGENCIES, NO.20, DEVRAJ MUDALIAR STREET, SIVAN CHETTY GARDEN, BENGALURU, KARNATAKA - 560042, REP. BY MRS LAKSHMI SAI NATH PARTNER, INCORPORATED UNDER INDIAN PARTNERSHIP ACT 1932. …PETITIONER (BY SMT LAKSHMI MENON.,ADVOCATE) AND: 1. THE STATE OF KARNATAKA, THROUGH THE PRINCIPAL SECRETARY, FINANCE DEPARTMENT, VIDHANA SOUDHA, BENGALURU 560001. 2. COMMISSIONER OF CENTRAL GST, NORTH WEST COMMISSIONERATE 2ND FLOOR SOUTH WING, BMTC BUS STAND COMPLEX, SHIVAJINAGAR, BENGALURU 560051. 3. THE SUPERINTENDENT OF CENTRAL TAX, EED2 RANGE , ED 2 DIVISION, GST COMMISSIONERATE, BENGALURU TRAFFIC AND TRANSIT MANAGEMENT CENTRE, BMTC BUS STAND, 2ND FLOOR, BMTC BUILDING, HAL AIRPORT ROAD, DOMMALURU, BENGALURU - 560071. Digitally signed by HEMALATHA A Location: HIGH COURTOF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:44030 WP No. 11677 of 2024 4. ASSISTANT COMMISSIONER OF CENTRAL TAX, EAST DIVISION-2, 6TH FLOOR B WING, TTMC BMTC BUS STAND BUILDING, OLD AIRPORT ROAD, BENGALURU - 560071. 5. M/S AROMA ENTERPRISES (INDIA) LIMITED, NO.88 AJANTA COMMERCIAL CENTER, NEAR INCOME TAX CIRCLE ASHRAM ROAD, AHMEDABAD - 380014, REP. BY ITS DIRECTOR SRI CHIRAG RAWAL. …RESPONDENTS (BY SRI K HEMA KUMAR, AGA FOR R1: SRI ARAVIND V CHAVAN, ADV. FOR R2 TO R4: R5 SERVED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO A) SET ASIDE THE SHOW CAUSE NOTICE DTD 28.02.2023 BEARING DATED 28/02/2023 BEARING DIN NO. 202302570000000F5F1 AND SCN REF. NO. 08/2022-23/GST ISSUED BY R4 FOR FY 2018-19 (ANNEXURE-L) 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 ORAL ORDER In this writ petition, the petitioner seeks the following reliefs: “a) To issue a writ of Certiorari or order or direction in the nature of Certiorari to set aside the Show Cause Notice dated 28.02.2023, bearing DIN no. 2023025700000000F5F1 and SCN Reference no. 08/2022- 23 GST issued by Respondent no.4 for FY 2018-19 (Annexure -L); - 3 - HC-KAR NC: 2025:KHC:44030 WP No. 11677 of 2024 b) To issue a writ of certiorari or order or direction in the nature of Certiorari to set aside the summary SCN dated 28.02.2023 issued by the Respondent no.4 in Form GST DRC-01 bearing Reference no. DRC01 258630 for FY 2018-19 (Annexure-L1); e) To issue a writ of Certiorari or order or direction in the nature of Certiorari to set aside and quash the Impugned Order passed by Respondent no. 4 under section 73 of the KGST and CGST Act, 2017. order dated 11.01.2024 bearing DIN 20240157YX000000B5CB for FY 2018-19 (Annexure-N); no: d) To direct the Respondent 4, to initiate the appropriate proceedings against the Respondent no.5 including the recovery of such sums now imposed against the petitioner, if this Hon'ble Court deems so fit and necessary. e) Grant any other orders that this Hon'ble Court deems fit and proper in the interest of justice.” 2. Heard the learned counsel for the petitioner and the learned AGA for respondent No.1 and learned counsel for respondent Nos. 2 to 4 and perused the material on record. 3. A perusal of the material on record will indicate that the petitioner filed its Return of Turnovers for tax - 4 - HC-KAR NC: 2025:KHC:44030 WP No. 11677 of 2024 periods 2018-19. The respondents initiated proceedings u/s. 73 of the Act CGST/KGST Act, 2017 and issued intimation notice to the Petitioner to file reply. Subsequently, the fourth respondent issued show-cause notice in Form GST DRC-01 as per section 73(2) of KGST Act, calling for explanation with regard to ITC availed is ineligible in terms of Section 16(2) of the CGST Act. The Petitioner filed its reply dated 21.03.2023 to the aforesaid show-cause notice. Pursuant to the same, the respondent without considering the reply filed by the Petitioner and not providing the petitioner a sufficient opportunity of personal hearing u/s. 75(4) of the Act proceeded to pass the impugned orders at Annexure-N dated 11.01.2024 which is assailed in the present petition. 4. Learned counsel for the petitioner submits that the petitioner had filed its reply to the show-cause notice dated 28.02.2023 and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned order at - 5 - HC-KAR NC: 2025:KHC:44030 WP No. 11677 of 2024 Annexure-N dated 11.01.2024 and the impugned order deserves to be quashed and the matter is remitted back to the respondent for reconsideration of the matter afresh in accordance with law by providing an opportunity to the petitioner to submit a reply to the show cause notice/ produce necessary documents and thereafter to pass appropriate orders. 5. 5. Per contra, learned AGA and learned counsel for the respondents would support the impugned orders and submit that there is no merit in the petition and the same is liable to be dismissed, especially when the petitioner did not exercise his due diligence in participating in the impugned proceedings. 6. A perusal of the material on record including the impugned order will indicate that it is an undisputed fact that the petitioner filed its reply to the show-cause notice and the impugned order has been passed without granting an opportunity to the petitioner to produce necessary documents. Under these circumstances, in view of the - 6 - HC-KAR NC: 2025:KHC:44030 WP No. 11677 of 2024 respondent failing to provide a reasonable opportunity to produce necessary documents, by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondents for reconsideration afresh in accordance with law by issuing certain directions. 7. In the result, I pass the following: ORDER i) The Writ Petition is allowed; ii) The impugned order passed by fourth respondent at Annexure-N dated 11.01.2024 is hereby set aside; iii) The petitioner shall appear before the fourth respondent on 01.12.2025, on which date, he shall submit his reply to the show cause notice along with relevant documents. - 7 - HC-KAR NC: 2025:KHC:44030 WP No. 11677 of 2024 iv) Upon the petitioner submitting a reply along with relevant documents to the show cause notice, on 01.12.2025, the fourth respondent shall afford a reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. (vi) In the event, the Petitioner does not appear before the 1st respondent on 01.12.2025 as stated supra, the present order shall stand automatically recalled without further orders. Sd/- (S.R.KRISHNA KUMAR) JUDGE CM List No.: 2 Sl No.: 0