Facts of the Case

M/S Regalos was issued a notice in FORM GST ASMT-10 dated 27.10.2023 alleging a mismatch between ITC availed and GSTR-2A/GSTR-3B figures, followed by a show-cause notice dated 19.12.2023 under Section 73 of the CGST/KGST Act, 2017. Both the ASMT-10 notice and the show-cause notice were uploaded under the 'Others' tab of the common GST Portal. As the petitioner did not file a reply, the respondent passed an ex-parte order dated 08.04.2024 under Section 73.

Issues Involved

  1. Whether an ex-parte order under Section 73 can be sustained when the underlying scrutiny notice and show-cause notice were both uploaded under a portal tab not ordinarily monitored by the assessee.

Petitioner's Arguments

  • The ASMT-10 notice and the show-cause notice were both uploaded under the 'Others' tab of the common GST Portal and hence went unnoticed, so the petitioner could not file any reply or documents, resulting in the ex-parte order in violation of principles of natural justice.

Respondent's Arguments

  • Learned counsel for the respondent submitted that there was no merit in the petition, which was liable to be dismissed.

Court Order / Findings

  • Having regard to the specific assertion that the petitioner was not provided sufficient opportunity to contest the proceedings culminating in the impugned ex-parte order, the Court adopted a "justice-oriented approach" and provided one further opportunity.
  • The impugned order dated 08.04.2024 was set aside, and the matter was remitted back to the respondent for reconsideration afresh from the stage of the petitioner submitting its reply to the show-cause notice dated 19.12.2023.
  • The petitioner was directed to appear before the respondent on a fixed date without awaiting further notice, with liberty to submit replies and documents, failing which the order would stand automatically recalled.

Important Clarification

  • Where a scrutiny intimation (ASMT-10) and the consequent show-cause notice under Section 73 are both uploaded under the 'Others' tab of the common portal — a location not ordinarily monitored by taxpayers — resulting in an ex-parte order, courts will set aside the order and remit the matter to the reply stage, typically with a firm one-time appearance date and an automatic-recall safeguard if the assessee again fails to appear.

Sections Involved

  • Section 73, CGST/KGST Act, 2017 – determination of tax not paid for reasons other than fraud.
  • Section 75(4), CGST/KGST Act, 2017 – opportunity of personal hearing before an adverse order.

Decision – In Favour of

Decided in favour of the Assessee. Ex-parte order set aside, remitted to reply stage with conditions.

Case Details

  • Court: High Court of Karnataka at Bengaluru
  • Case No.: Writ Petition No. 31442 of 2025 (T-RES); NC: 2025:KHC:41598
  • Coram: Hon'ble Mr. Justice S.R. Krishna Kumar
  • Date of Order: 17 October 2025

Link to Download the Order

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