- 1 - HC-KAR NC: 2025:KHC:53115 WP No. 37238 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.37238 OF 2025 (T-RES) BETWEEN: OCEAN CONSTRUCTIONS (INDIA) PRIVATE LIMITED A PRIVATE LIMITED COMPANY NO.15-17-893/3(3), ZUHRA 2ND CROSS, SHIVABAGH, KADRI MANGALURU – 575 002. REPRESENTED BY ITS DIRECTOR MR. SHARFUDDIN ALI SON OF MR.MOHAMMED MULKI AGED ABOUT 47 YEARS. …PETITIONER (BY SRI. PRANAV G. AMBEKAR, FOR SMT. AKHILESHWARI, ADVOCATES) AND: 1. ADDITIONAL COMMISSIONER OF CENTRAL TAX MANGALURU COMMISSIONERATE, MANGALURU OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE & CENTRAL TAX VII FLOOR, TRADE CENTRE BUNTS HOSTEL ROAD MANGALURU – 575 003. 2. ADDITIONAL DIRECTOR GENERAL DIRECTOR GENERAL OF GST INTELLIGENCE (DGGI) BELAGAVI ZONAL UNIT BELAGAVI – 590 001. 3. COMMISSIONER OF CENTRAL EXCISE & CENTRAL TAX (REVIEW) VII FLOOR, TRADE CENTRE BUNTS HOSTEL ROAD MANGALURU – 575 003. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:53115 WP No. 37238 of 2025 4. SENIOR INTELLIGENCE OFFICER OFFICE OF THE ASSISTANT DIRECTOR DIRECTOR GENERAL OF GST INTELLIGENCE MANGALURU REGIONAL UNIT MANGALURU – 575 003. …RESPONDENTS (BY SRI. ARAVIND V. CHAVAN, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DIGITALLY SIGNED AND ELECTRONICALLY ISSUED ORDER-IN-ORIGINAL ISSUED FOR THE TAX PERIOD JANUARY 2022 TO MARCH 2022 UNDER SECTION 74(1) OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (HEREINAFTER REFERRED TO AS “CGST ACT”) DATED 23.01.2025 BEARING OIO SI.NO.MLR-GST-000-SDN-ADC-SC-26-2024-25 AND DIN NO. 20250157YZ0000333C04 ISSUED BY RESPONDENT NO.1 AND THE SAME IS ENCLOSED AND MARKED AS ANNEXURE ‘A’ 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 petition, petitioner seeks the following reliefs: “(i) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the digitally signed and electronically issued Order-in-Original issued for the tax period January 2022 to March 2022 under section 74(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "CGST Act") dated 23.01.2025 bearing OIO SI.No.MLR-GST-000-SDN-ADC-SC-26-2024-25 and DIN No.20250157YZ0000333C04 issued by Respondent No.1 and the same is enclosed and marked as Annexure 'A'. - 3 - HC-KAR NC: 2025:KHC:53115 WP No. 37238 of 2025 (ii) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the digitally signed and electronically issued Show Cause Notice (hereinafter referred to as "SCN") issued for the tax period January 2022 to March 2022 under Section 74(1) of the CGST Act dated 15.07.2024 issued by the Respondent No.2 bearing DIN No.202407DSS1000082398A and the same is enclosed and marked as Annexure 'B'. (iii) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity.” 2. Heard the learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that the respondent initiated proceedings under Section 74 of the CGST / KGST Act, 2017 and issued intimation notice to the petitioner to file reply. Subsequently, the 2nd respondent issued Show Cause Notice calling for explanation with regard to discrepancies in the tax liability. The petitioner filed its reply dated 23.12.2024 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 sufficient opportunity of personal - 4 - HC-KAR NC: 2025:KHC:53115 WP No. 37238 of 2025 hearing proceeded to pass the impugned order at Annexure – A dated 23.01.2025, 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 15.07.2024 and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned order at Annexure – A dated 23.01.2025 and the impugned order deserves to be quashed and the matter 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. Per contra, learned counsel for respondents would support the impugned order 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 - 5 - HC-KAR NC: 2025:KHC:53115 WP No. 37238 of 2025 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 respondent failing to provide 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 respondent for reconsideration afresh in accordance with law by issuing certain directions. 7. In the result, I pass the following: ORDER i) The petition is hereby allowed. ii) The impugned order at Annexure – A dated 23.01.2025 passed by 1st respondent, is hereby set aside; iii) Matter is remitted back to 1st respondent to stage of post Show Cause Notice for reconsideration afresh. iv) Petitioner is at liberty to submit its reply to the show cause notice along with relevant documents. - 6 - HC-KAR NC: 2025:KHC:53115 WP No. 37238 of 2025 v) Upon the petitioner submitting a reply along with relevant documents to the show cause notice, the 1st respondent shall afford reasonable opportunity to the petitioner and hear it and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 2 Sl No.: 40