Facts of the Case: M/S Padma Fertilizers, a proprietary concern engaged in the business of fertilizers and chemicals and regularly discharging its tax liability, challenged an adjudication order dated 07.02.2025 and the consequential summary order in Form GST DRC-07, both passed by the Commercial Tax Officer (Audit), Arasikere, pursuant to Show Cause Notices dated 29.10.2024 and 31.10.2024. The petitioner's sole contention was that the impugned order was passed ex parte, as the Show Cause Notices never reached it and it therefore had no opportunity to participate in the adjudication proceedings.

Issues Involved:

  1. Whether an ex parte GST adjudication order, passed where the assessee claims non-receipt of the underlying Show Cause Notices, warrants interference.

Petitioner's Arguments:

  • The impugned order was passed ex parte, without any opportunity to the petitioner to participate in the proceedings, since the Show Cause Notices never reached the petitioner's doors.

Respondent's Arguments:

  • The High Court Government Pleader refuted the submission, contending that the notices were sent through electronic mail and were therefore deemed to have been seen by the petitioner, and that no further indulgence should be shown by the Court.

Court Order / Findings:

  • On perusing the impugned order itself, the Court found the factum of ex parte proceedings vindicated, and held it appropriate to grant the petitioner one opportunity to appear and submit its reply, allowing the petition in part.
  • The matter was remitted to the concerned respondent with a direction to the petitioner to submit its reply to the Show Cause Notices by appearing before the authority on a specified date, subject to a cost of Rs. 5,000 payable to the High Court Legal Services Committee.
  • As a matter of form, the impugned adjudication order and the summary DRC-07 order were quashed.

Important Clarification:

  • Where the record itself bears out that an assessment proceeded ex parte and the assessee genuinely did not receive the Show Cause Notice, courts will quash the resultant order and grant a fresh opportunity to reply — even where the Department claims deemed service by email — though such relief may be conditioned upon payment of costs to discourage casual or repeat non-participation.

Sections Involved:

  • Section 75(4), GST Act, 2017 — mandatory opportunity of hearing before an adverse order.
  • Form GST DRC-07 — summary of the adjudication order.

Decision – In Favour of: Assessee (allowed in part, subject to cost).

Case Details: High Court of Karnataka at Bengaluru; Writ Petition No. 26162 of 2025 (T-RES); Neutral Citation 2025:KHC:37478; Coram: Hon'ble Mr. Justice M. Nagaprasanna; Date of Order: 18th September, 2025.

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