Facts of the Case

Muniraja V.L., an individual carrying on business, challenged an Order-in-Original bearing No.127/2024-25 GST (DIN 20250157YU0000020920) dated 23.01.2025, passed by the Assistant Commissioner of Central Tax, West Division-1, Bengaluru West Commissionerate. The impugned order recorded that a show cause notice dated 28.12.2023 had been issued to the petitioner, but the petitioner neither submitted a reply nor appeared for personal hearing, and the order was accordingly passed against him. The petitioner's case before the High Court was that his inability to reply and participate in the proceedings was owing to bona fide reasons, unavoidable circumstances and sufficient cause, and that the matter deserved to be remitted so that he could place his defence on record.

Issues Involved

  1. Whether an Order-in-Original passed after the noticee's failure to reply or appear for personal hearing can be set aside where the failure is attributable to bona fide reasons.
  2. Whether the matter should be remitted for fresh consideration keeping all contentions of both sides open.

Petitioner's Arguments

  • The inability to submit a reply to the show cause notice and to appear for personal hearing was due to bona fide reasons, unavoidable circumstances and sufficient cause.
  • The impugned order deserves to be set aside and the matter remitted to enable the petitioner to reply to the show cause notice and contest the proceedings on merits.

Respondent's Arguments

  • Learned counsel for the respondents contested the petition and urged various contentions in support of the impugned order, though the Court did not find it necessary to record or adjudicate upon the rival contentions on merits.

Court Order / Findings

  • The Court noted the undisputed fact that the petitioner had not submitted a reply to the show cause notice dated 28.12.2023 and had not appeared for personal hearing, attributing this to bona fide reasons and unavoidable circumstances.
  • Without expressing any opinion on the merits or demerits of the rival contentions, the impugned Order-in-Original dated 23.01.2025 was set aside and the matter remitted to the Assistant Commissioner for reconsideration afresh in accordance with law, keeping open all contentions of both sides.

Important Clarification

  • Where a taxpayer's non-participation in adjudication proceedings — failure to reply to a show cause notice or attend personal hearing — is genuinely attributable to bona fide reasons, the writ court may remit the matter for a fresh opportunity without going into the merits of the underlying tax dispute.
  • Such remittal orders keep all rival contentions open, so the ultimate outcome on merits remains to be decided afresh by the adjudicating authority.

Sections Involved

  • Section 73/74, CGST Act, 2017 — adjudication of tax demand via show cause notice and Order-in-Original.
  • Articles 226 and 227 of the Constitution of India — invoked for the writ challenge.

Decision – In Favour of

Assessee, on the limited ground of denial of a genuine opportunity; disposed of with directions and no finding on merits.

Case Details

High Court of Karnataka at Bengaluru; Writ Petition No. 12905 of 2025 (T-RES); Neutral Citation: 2025:KHC:52405; Coram: Hon'ble Mr. Justice S.R. Krishna Kumar; Order dated 10.12.2025.

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