- 1 - HC-KAR NC: 2025:KHC:54227 WP No. 38224 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 38224 OF 2025 (T-RES) BETWEEN: M/S. S R S STEEL AND CEMENT TRADERS, REP. BY ITS PROPRIETOR, MR. NAGESHA, NO. 397, GROUND FLOOR, CHIKKATHOGUR MAIN ROAD, SHIVA TEMPLE OPP: ELECTRONIC CITY, PHASE 1 BASAPURA ROAD, (BANGALORE) URBAN, BANGALORE -560 100. …PETITIONER (BY SRI RAGHAVENDRA B HANJER, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, REP. BY ITS SECRETARY, DEPARTMENT OF FINANCE, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BANGALORE-560 001. 2. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-025, DGSTO - 04, TTMC BUILDING, BMTC 6TH FLOOR, 80 FEET ROAD, KORAMANGALA, BANGALORE-560095. …RESPONDENTS (BY SMT. JYOTHI M MARADI, HCGP) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-A) ISSUE A WRIT, ORDER OR DIRECTION IN THE NATURE OF CERTIORARI BY QUASHING THE IMPUGNED THE SHOW CAUSE NOTICE BEARING NO. CTO/LGSTO- 25/DRC-01/2AVS3B/2024-25 DATED 28.06.2024 (ANNEXURE- A1) ALONG WITH SUMMARY OF SHOW CAUSE NOTICE REFERENCE NO.ZD2906241384735 ISSUED IN FORM GST DRC-01 DATED 29-06-2024 Digitally signed by NANDINI R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:54227 WP No. 38224 of 2025 (ANNEXURE- A2), THE IMPUGNED ORDER UNDER SECTION 73 OF THE KGST / CGST ACT, 2017 AND SECTION 20 OF THE IGST ACT, 2017 BEARING NO. CTO/LGSTO-025/DRC-07/2A VS 3B/2024-25 DATED 10.09.2024 (ANNEXURE- B1) ALONG WITH SUMMARY OF THE ORDER BEARING REFERENCE NO. ZD2909240262746 PASSED IN FORM GST DRC-07 DATED 11.09.2024 PASSED BY THE 2ND RESPONDENT (ANNEXURE- B2) AND THE IMPUGNED ORDER UNDER SECTION 107(11) OF THE KGST ACT, 2017 BEARING NO. ZD290925176780Q DATED 25.09.2025 (ANNEXURE-C1) ALONG WITH SUMMARY OF THE DEMAND AFTER ISSUE OF ORDER BY THE APPELLATE AUTHORITY BEARING NO. ZD290925176780Q DATED 25.09.2025 ISSUED IN FORM GST APL-04 (ANNEXURE-C2) BY THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS)-8, BANGALORE IN APPEAL NO. GST.AP. NO. 186/25-26 ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER 1. In this petition, petitioner seeks the following reliefs: "WHEREFORE, the Petitioner respectfully pray that this Hon'ble Court be pleased to: a. Issue a writ, order or direction in the nature of Certiorari by quashing the impugned the Show Cause Notice bearing No. CTO/LGSTO-25/DRC-01/2AVS3B/2024-25 dated 28.06.2024 (Annexure- 'A1') along with Summary of Show Cause Notice Reference No. -ZD2906241384735 issued in FORM GST DRC-01 dated 29-06-2024 (Annexure- 'A2'), the impugned Order under Section 73 of the KGST / CGST Act, 2017 & Section 20 of the IGST Act, 2017 bearing No. CTO/LGSTO- 025/DRC-07/2A Vs 3B/2024-25 dated 10.09.2024 (Annexure- 'B1') along with Summary of the Order bearing Reference No. - 3 - HC-KAR NC: 2025:KHC:54227 WP No. 38224 of 2025 ZD2909240262746 passed in FORM GST DRC-07 dated 11.09.2024 passed by the 2nd Respondent (Annexure- 'B2') and the impugned Order under Section 107(11) of the KGST Act, 2017 bearing No. ZD290925176780Q dated 25.09.2025 (Annexure- 'C1') along with Summary of the demand after issue of order by the Appellate Authority bearing No. ZD290925176780Q dated 25.09.2025 issued in FORM GST APL-04 (Annexure-'C2') by the Joint Commissioner of Commercial Taxes (Appeals)-8, Bangalore in Appeal No. GST.Ap. No. 186/25-26; b) Consequently, issue a writ, order or direction in the nature of any writ declaring that denial of the input tax credit of Rs.6,78,152/- as claimed by the Petitioner in GSTR-3B but not reflected in the GSTIN Portal for the tax periods from April 2020 to March 2021 is illegal, arbitrary and unsustainable in law; c) Alternatively, issue a writ, order or direction in the nature of Certiorari by quashing the Order under Section 73 of the KGST/CGST Act, 2017 & Section 20 of the IGST Act, 2017 bearing No. CTO/LGSTO-025/DRC-07/2A Vs 3B/20224-25 dated 10.09.2024 (Annexure- 'B1') along with Summary of the Order bearing Reference No. ZD2909240262746 passed in FORM GST DRC-07 dated 11.09.2024 passed by the 2nd Respondent (Annexure- 'B2') and the impugned Order under Section 107(11) of the KGST Act, 2017 bearing No. ZD290925176780Q dated 25.09.2025 (Annexure- 'C1') along with Summary of the demand after issue of order by the Appellate Authority bearing No. ZD290925176780Q dated - 4 - HC-KAR NC: 2025:KHC:54227 WP No. 38224 of 2025 25.09.2025 issued in FORM GST APL-04 (Annexure-C2') by the Joint Commissioner of Commercial Taxes (Appeals)-8, Bangalore in Appeal No. GST.Ap. No. 186/25-26, in rejecting the appeal on time bar and thereby, remand the matter back to the 2nd Respondent to consider the appeal on merits after condoning the delay in filing of appeal; d) Pass such other orders or directions as deemed fit and proper in the facts and circumstances of the case in the interest of justice." 2. Heard learned counsel for the petitioner and learned HCGP for the respondents and perused the material on record. 3. A perusal of material on record will indicate that, the 2nd respondent issued a show-cause notice dated 28.06.2024 under Section 73 of the CGST/KGST Act, 2017 along with summary at Annexures-A1 and A2. Since the petitioner did not submit his reply to the said show-cause notice, the 2nd respondent proceeded to pass the impugned order dated 10.09.2024 under Section 73 of the KGST Act, 2017 confirming the total demand of Rs.11,65,744/- including the tax, interest and penalty. The same was challenged before the Appellate Authority. The Appellate Authority rejected - 5 - HC-KAR NC: 2025:KHC:54227 WP No. 38224 of 2025 the appeal on the ground of limitation vide order dated 25.09.2025 and the said orders are challenged in the present petition. 4. Learned counsel for the petitioner submits that non filing of reply to the show-cause notice and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause and resultantly could not contest the proceedings and 2nd respondent proceeded to pass the impugned order. Pursuant to the aforesaid order, the petitioner filed an appeal on 25.06.2025 before the Appellate Authority which was dismissed as barred by limitation vide impugned order dated 25.09.2025. Therefore, the petitioner has no option but to approach this Court by way of the present petition, inter alia contending that the inability and omission on the part of the petitioner to submit a reply to the show-cause notice 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 aside the impugned orders, the petitioner would submit a reply to the show-cause notice and contest the proceedings. - 6 - HC-KAR NC: 2025:KHC:54227 WP No. 38224 of 2025 5. Per contra, learned HCGP for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 6. Under these circumstances, 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 orders and remitting the matter back to the 2nd respondent for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned show-cause notice dated 28.06.2024 by imposing cost of Rs.10,000/- on the petitioner payable to the High Court Legal Service Authority. 7. In the result, I pass the following: ORDER (i) The petition is hereby allowed, subject to payment - 7 - HC-KAR NC: 2025:KHC:54227 WP No. 38224 of 2025 of cost of Rs.10,000/- to the Karnataka High Court Legal Services Authority, Bengaluru, within a period of six weeks from today. (ii) The impugned order dated 10.09.2024 passed by the 2nd respondent under Section 73 of the KGST Act, 2017 at Annexure – B1 as well as impugned order dated 25.09.2025 passed by the Appellate Authority under Section 107(11) of the KGST Act, 2017 at Annexure-C1 are hereby set aside. (iii) The matter is remitted back to the 2nd respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 28.06.2024 vide Annexure-A1. (iv) The petitioner is directed to appear before the 2nd respondent on 04.02.2026 without awaiting further notice from the 2nd respondent. (v) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the first respondent who shall provide sufficient and - 8 - HC-KAR NC: 2025:KHC:54227 WP No. 38224 of 2025 reasonable opportunity to the petitioner and hear them and proceed further in accordance with law. (vi) In the event, the Petitioner does not appear before the 2nd respondent on 04.02.2026 as stated supra, present order shall stand automatically recalled without further orders. Sd/- (S.R.KRISHNA KUMAR) JUDGE tsn* List No.: 2 Sl No.: 17