Facts of the Case

Sri Kudur Venkata Subbaiah Krishnaiah Setty challenged an Order-in-Original dated 30.04.2022 passed by the Assistant Commissioner of Central Tax, arising from a show cause notice dated 23.04.2021 issued during the COVID-19 lockdown period, as well as the confirming Order-in-Appeal dated 02.11.2023, contending that neither the show cause notice nor prior communications had been properly served on him due to the pandemic disruption. He also sought a mandamus directing disposal of his rectification application under Section 74(3) and, alternatively, for admission of his appeal under Section 85(1) of the Act.

Issues Involved

  1. Whether an Order-in-Original passed pursuant to a COVID-era show cause notice that was allegedly not served on the assessee, and the confirming appellate order that did not decide the appeal on merits, can be sustained.
  2. Whether the matter is squarely covered by the Coordinate Bench ruling in M/s. Karnataka Chinmaya Seva Trust vs. Joint Commissioner of Central Tax.

Petitioner's Arguments

  • The show cause notice dated 23.04.2021 and prior communications were not served on the petitioner in view of the COVID-19 lockdown, violating principles of natural justice and rendering the Order-in-Original devoid of sanction of law.
  • The Order-in-Appeal dated 02.11.2023 was also violative of natural justice as the appeal was not adjudicated on merits.
  • In the alternative, the rectification application under Section 74(3) ought to be decided by a speaking order, or the appeal under Section 85(1) ought to be admitted and adjudicated on merits.

Respondent's Arguments

  • The respondents urged several contentions in support of the validity of the Order-in-Original and the Order-in-Appeal, though these were not separately elaborated once the Court found the issue squarely covered by precedent.

Court Order / Findings

  • The Court held that the controversy was directly and squarely covered by the Coordinate Bench ruling in M/s. Karnataka Chinmaya Seva Trust vs. Joint Commissioner of Central Tax [WP No.11154/2023 & connected matters], which had set aside similar Orders-in-Original passed during the pandemic period and relegated the matters to the post-show-cause-notice stage.
  • Following that ruling, the impugned Order-in-Original dated 30.04.2022 and the Order-in-Appeal were quashed, and the matter was remitted to the concerned respondent to proceed afresh from the stage of the show cause notice, in accordance with law.

Important Clarification

  • Show cause notices and orders issued during the COVID-19 lockdown period, where service on the assessee could not be established, are liable to be quashed and the proceedings relegated to the post-show-cause-notice stage rather than dismissed outright.
  • Once a Coordinate Bench has laid down the governing principle for a class of similarly affected pandemic-era GST orders, subsequent writ petitions raising the identical grievance are disposed of by simply applying that ruling, without a fresh merits analysis.

Sections Involved

  • Order-in-Original, Section 73/74, CGST Act, 2017 — the original adjudication order under challenge, passed based on a COVID-era show cause notice.
  • Section 74(3), CGST Act, 2017 — power of rectification of the adjudicating authority's own order.
  • Section 85(1), CGST Act, 2017 — provisions relating to liability in case of transfer of business, invoked here regarding admission of an appeal.
  • Section 107, CGST Act, 2017 — the appellate provision under which the Order-in-Appeal was earlier passed.

Decision – In Favour of

The decision is in favour of the assessee (Sri Kudur Venkata Subbaiah). Both the Order-in-Original and the Order-in-Appeal were quashed and the matter relegated to the show cause notice stage for fresh proceedings.

Case Details

High Court of Karnataka at Bengaluru; Writ Petition No. 5010 of 2025 (T-RES); Coram: Hon'ble Mr. Justice S.R. Krishna Kumar; Order dated 12.11.2025.

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.