Facts of the Case

The petitioner, M/S. Jothi Polymers Pvt. Ltd., after receiving a pre-intimation in Form GST ASMT-10 dated 11.08.2023 and filing replies on 16.08.2023 and 25.08.2023, was issued a show cause notice dated 22.03.2024 under Section 73 of the CGST/KGST Act alleging wrongful/excessive availment of Input Tax Credit. Since the petitioner did not submit a reply to this notice, an order dated 12.07.2024 was passed under Section 73(9) confirming a total demand of Rs. 33,47,194 (tax, interest and penalty). The petitioner's case was that the show cause notice had been uploaded under the 'View Additional Notices and Order' head on the GST Portal rather than the main 'Notices/Orders' column, and therefore went unnoticed.

Issues Involved

  1. Whether the petitioner's failure to reply to the show cause notice, allegedly due to its being uploaded under a different, less-visible portal head, warranted setting aside the ex-parte confirmed demand.
  2. Whether one further opportunity to contest the proceedings should be granted on the facts.

Petitioner's Arguments

  • The show cause notice was uploaded under the head 'View Additional Notices and Order' on the GST Portal and not in the main 'Notices/Orders' column, and hence went unnoticed by the petitioner, who was therefore unable to submit a reply or documents.
  • The inability to reply was due to bonafide reasons, unavoidable circumstances and sufficient cause, and if given one more opportunity by setting aside the impugned order, the petitioner would file a reply and contest the proceedings on merits.
  • A direction was also sought for refund/re-credit and adjustment of any ITC shortfall already recovered in the interim, once re-adjudication is completed.

Respondent's Arguments

  • The show cause notice was duly communicated electronically to the petitioner by uploading it on the GST Portal as well as by e-mail, so the petitioner could not complain of being unaware of the impugned notice, and there was no merit in the petition.

Court Order / Findings

  • The Court found it a matter of record and undisputed that the petitioner did not submit its reply, which culminated in the impugned ex-parte order; while both sides made contentions regarding notice and awareness, the Court chose to adopt a justice-oriented approach.
  • Having regard to the petitioner's specific assertion of bonafide reasons and sufficient cause for the omission, the Court deemed it just to provide one more opportunity by setting aside the impugned order dated 12.07.2024 under Section 73(9) and remitting the matter for reconsideration from the stage of reply to the show cause notice dated 22.03.2024.
  • The petitioner was directed to appear before Respondent No.2 on a fixed date without awaiting further notice, failing which the order would stand automatically recalled, with liberty reserved to submit replies, pleadings and documents which the respondent was directed to consider after affording a hearing.

Important Clarification

  • Even where the Department can demonstrate that a show cause notice was technically uploaded on the GST Portal (and possibly also e-mailed), courts continue to adopt a justice-oriented approach and grant a further opportunity to contest proceedings on merits where the notice went unnoticed under a less-prominent portal head such as 'Additional Notices and Orders', particularly where the assessee asserts bona fide reasons for the lapse.
  • This is a conditional and self-executing relief — appearance before the authority on the fixed date without waiting for a fresh notice is a strict pre-condition, non-compliance with which results in automatic recall of the benefit.

Sections Involved

  • Section 73(1) and 73(9), CGST/KGST Act, 2017 – provisions under which the show cause notice was issued and the ex-parte order confirming demand was passed.
  • Form GST ASMT-10 – pre-intimation of discrepancies preceding the formal show cause notice.
  • GST Portal – 'Additional Notices and Order' head – the administrative placement issue central to the petitioner's grievance of non-notice.

Decision – In Favour of

The petition is allowed in favour of the Assessee. The ex-parte order is set aside and the matter is remitted to the stage of reply to the show cause notice, with a conditional opportunity to be heard.

Case Details

  • Court: High Court of Karnataka at Bengaluru
  • Case No.: Writ Petition No. 26842 of 2025 (T-RES)
  • Neutral Citation: NC: 2025:KHC:40507
  • Coram: Hon'ble Mr. Justice S.R. Krishna Kumar
  • Date of Order: 13.10.2025

Link to Download the Order

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