Facts of the Case

Sri Lakshmaiah Nagaraja challenged an ex parte adjudication order dated 12.02.2025 passed under Section 73(9) of the CGST/KGST Act, 2017. The proceedings had commenced with a scrutiny notice in Form GST ASMT-10 under Section 61 dated 15.02.2024, followed by an intimation in Form GST DRC-01A dated 23.10.2024, and a show-cause notice in Form GST DRC-01 dated 15.11.2024 under Section 73(1). The petitioner did not reply to any of these, and the respondent passed the impugned ex parte order.

Issues Involved

  1. Whether a petitioner's claim of non-receipt of the ASMT-10, DRC-01A and DRC-01 notices, made in bonafide circumstances, justifies setting aside an ex parte Section 73(9) order.
  2. On what conditions such relief should be granted.

Petitioner's Arguments

  • He did not receive any of the notices or the impugned order due to bonafide reasons, unavoidable circumstances and sufficient cause.
  • Sought that the order be set aside and the matter remitted to the stage of filing a reply to the show-cause notice.

Respondent's Arguments

  • The HCGP submitted there was no merit in the petition and it deserved dismissal.

Court Order / Findings

  • Noting it was an undisputed fact that the petitioner had not submitted any reply to the notices nor participated in the proceedings, resulting in the ex parte order, the Court adopted a "justice-oriented approach" to provide one more opportunity.
  • The impugned order dated 12.02.2025 was set aside, subject to the petitioner paying costs of Rs.10,000 to the Karnataka High Court Legal Services Authority within six weeks, and the matter was remitted to the respondent for reconsideration afresh from the stage of the petitioner submitting a reply to the show-cause notice.
  • The petitioner was directed to appear on 17.11.2025 without awaiting further notice, failing which the order would stand automatically recalled, with liberty to submit replies/documents to be duly considered after a reasonable hearing.

Important Clarification

  • Courts are consistently willing to set aside ex parte GST assessment orders arising from a chain of unanswered ASMT-10/DRC-01A/DRC-01 notices where the taxpayer credibly claims non-receipt.
  • Such relief is now routinely conditioned on payment of costs to the High Court Legal Services Authority and on the taxpayer's commitment to appear on a fixed date, failing which the relief automatically lapses.

Sections Involved

  • Section 61, CGST Act, 2017 — scrutiny of returns, initiated via Form GST ASMT-10.
  • Section 73, CGST Act, 2017 — determination of tax not paid, non-fraud, including the DRC-01A pre-notice intimation and DRC-01 show-cause notice under sub-section (1), and the order under sub-section (9).

Decision – In Favour of

In favour of the assessee, conditionally — the order was set aside on payment of costs, and the matter was remitted for fresh consideration.

Case Details

Court: High Court of Karnataka at Bengaluru
Case No.: Writ Petition No. 30600 of 2025 (T-RES); NC: 2025:KHC:40458
Coram: Hon'ble Mr. Justice S.R. Krishna Kumar
Date of Order: 13th October 2025

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