Facts of the Case

The petitioner, SCP Ready Mix Concrete, challenged an adjudication order dated 13.08.2024 passed by the Deputy Commissioner of Commercial Taxes (Audit), Bengaluru, under Section 73(9) of the CGST/KGST Act, 2017, confirming a total demand of Rs.2,80,46,214 including tax, interest and penalty, on the ground of alleged excess Input Tax Credit claimed. Proceedings had commenced with an intimation in Form GST DRC-01A dated 22.05.2024, followed by a show cause notice dated 28.05.2024 under Section 73(1). The petitioner did not respond to either communication, explaining that both were uploaded only under the "Additional Notices/Orders" tab of the GST portal and consequently went unnoticed, resulting in an ex-parte order confirming the entire demand.

Issues Involved

  1. Whether an ex-parte GST demand order, passed after notices were uploaded only under the "Additional Notices/Orders" tab and consequently unnoticed, should be set aside.
  2. What safeguards should accompany a remand in such circumstances.

Petitioner's Arguments

  • Both the pre-intimation notice and the show cause notice were uploaded under the "Additional Notices/Orders" tab of the GST portal, where they went unnoticed, preventing the petitioner from submitting any reply or contesting the proceedings.
  • The inability to respond was due to bona fide reasons, unavoidable circumstances and sufficient cause, and one further opportunity would allow the petitioner to properly contest the demand.

Respondent's Arguments

  • The Additional Government Advocate submitted that there was no merit in the petition and that it was liable to be dismissed, without substantively disputing the petitioner's account of the notices' placement on the portal.

Court Order / Findings

  • The Court accepted that the petitioner's inability to submit replies and contest the proceedings was attributable to bona fide reasons, unavoidable circumstances and sufficient cause, given that both notices were placed only under the less-visible "Additional Notices/Orders" tab.
  • Adopting a justice-oriented approach, the Court set aside the impugned order dated 13.08.2024 passed under Section 73(9) and remitted the matter back to the respondent for reconsideration afresh from the stage of the petitioner submitting its reply to the show cause notice dated 28.05.2024.
  • The petitioner was directed to appear before the respondent on 02.12.2025 without awaiting further notice, with liberty to submit replies and documents; failure to appear on that date would result in the order standing automatically recalled.

Important Clarification

  • Where a taxpayer demonstrates a genuine, bona fide reason for missing GST notices placed only under the portal's "Additional Notices/Orders" tab, courts may set aside even a substantial ex-parte demand and remit the matter for fresh consideration from the reply stage.
  • Such relief is typically conditioned on the taxpayer's mandatory appearance on a fixed date, with an automatic-recall safeguard ensuring the relief lapses if the taxpayer again fails to participate.

Sections Involved

  • Section 73, CGST/KGST Act, 2017 – determination of tax not paid, other than fraud cases, covering excess ITC claims.
  • Form GST DRC-01A, CGST Rules, 2017 – pre-intimation of tax liability ascertained by the proper officer.

Decision – In Favour of

In favour of the assessee — the demand order was set aside and the matter remitted for fresh consideration with a genuine opportunity of hearing, subject to mandatory appearance.

Case Details

High Court of Karnataka at Bengaluru; WRIT PETITION NO. 21139 OF 2025 (T-RES); Coram: Hon'ble Mr Justice S.R. Krishna Kumar; Date: 04.11.2025.

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