Facts of the Case

M/s Metropolis Fair Oaks, a partnership firm, challenged an ex-parte adjudication order dated 27.06.2024 (Order-in-Original No. 02/2024-25/CED-9) passed by the Superintendent of Central Tax. Pursuant to a notice in Form GST ASMT-10 under Section 61 of the CGST/KGST Act, 2017 and a subsequent intimation in Form GST DRC-01A, a show cause notice in Form GST DRC-01A dated 27.10.2022 had been issued to the petitioner, to which no reply was submitted. The department thereafter proceeded to pass the impugned ex-parte adjudication order. The petitioner contended it had not received the notices/orders due to bona fide reasons and unavoidable circumstances, and sought that the matter be remitted to the stage of filing a reply.

Issues Involved

  1. Whether an ex-parte GST adjudication order passed without any response from the assessee to prior scrutiny notices should be set aside to permit a fresh opportunity to contest the proceedings.

Petitioner's Arguments

  • The notices and the impugned order were not received by the petitioner; due to bona fide reasons, unavoidable circumstances and sufficient cause, it could not submit a reply or contest the proceedings.
  • The impugned order should be set aside and the matter remitted to the stage of the show cause notice to allow the petitioner to reply.

Respondent's Arguments

  • The Department contended there was no merit in the petition and that it was liable to be dismissed, since the petitioner had neither replied to the notices nor participated in the proceedings.

Court Order / Findings

  • The Court noted it was undisputed that the petitioner did not respond to the notices or participate in the adjudication, resulting in the ex-parte order.
  • Adopting a 'justice-oriented approach', the Court set aside the impugned order dated 27.06.2024, subject to payment of costs of Rs. 15,000/- to the Karnataka High Court Legal Services Authority.
  • The matter was remitted to the stage of the petitioner submitting a reply to the show cause notice, with the petitioner directed to appear before the department on a fixed date without awaiting further notice.
  • The Court reserved liberty for the petitioner to submit replies and documents, to be considered after affording a reasonable opportunity of hearing, and specified that non-appearance on the fixed date would automatically recall the order.

Important Clarification

  • Courts may set aside an ex-parte GST adjudication order to give the assessee one further opportunity to be heard, even where the assessee's non-participation is disputed, but such relief is commonly conditioned upon payment of costs and strict compliance with fresh timelines, failing which the relief lapses automatically.

Sections Involved

  • Section 61, CGST/KGST Act, 2017 — scrutiny of returns, initiated through Form GST ASMT-10.
  • Form GST DRC-01A — intimation of tax ascertained as payable before issuance of a formal show cause notice.

Decision – In Favour of

The writ petition was allowed in part in favour of the Assessee, being remitted for a fresh opportunity subject to cost, rather than a decision on the merits of the underlying demand.

Case Details

Court: High Court of Karnataka at Bengaluru
Case No.: Writ Petition No. 28679 of 2025 (T-RES)
Coram: Hon'ble Mr. Justice S.R. Krishna Kumar
Date of Order: 14.10.2025

Link to Download the Order

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