Facts of the Case

The petitioner, M/s Jordindian, a partnership firm, challenged an order dated 14.08.2024 passed under Section 73 of the KGST Act, 2017 (T No. 1695) for the financial year 2019-20, along with the consequential summary order and a Show Cause Notice dated 28.05.2024, and also an earlier notice in Form GST ASMT-10 dated 07.09.2023 issued under Section 61 for scrutiny of returns. The petition also sought to declare four notifications extending limitation (Notification Nos. 9/2023-CT, 56/2023-CT, 06/2023 and 25/2023) as ultra vires Section 168A of the CGST/KGST Act. The petitioner's case was that all notices, including the ASMT-10 intimation, a subsequent DRC-01A intimation, and the Section 73(1) Show Cause Notice, had been sent only by e-mail to the petitioner's chartered accountant, who failed to inform the petitioner, resulting in no reply being filed at any stage before the impugned order was passed.

Issues Involved

  1. Whether the Section 73 order, summary order and preceding notices could be sustained where communication was made only to the assessee's chartered accountant, who did not inform the assessee.
  2. Whether the matter warranted remand from the stage of the ASMT-10 notice, and on what terms regarding limitation.

Petitioner's Arguments

  • Due to bona fide reasons and sufficient cause — notices being sent only to the CA who failed to inform the petitioner — the petitioner could not submit a reply or contest the proceedings.
  • The petitioner has a good case to urge on merits and sought quashing of the ASMT-10 notice, Show Cause Notice and impugned order, with remand for fresh consideration from the ASMT-10 stage.

Respondent's Arguments

  • The State opposed the petition on merits but, alternatively, submitted that if the matter were remitted, the period from the ASMT-10 notice (07.09.2023) till the date of disposal should be excluded while computing limitation under Section 73(10) of the KGST Act.

Court Order / Findings

  • Accepting the petitioner's specific assertion of bona fide reasons and unavoidable circumstances for the omission to reply, the Court set aside the impugned Show Cause Notice and orders and remitted the matter to the stage of the petitioner submitting a reply to the ASMT-10 notice, with liberty to file replies and documents and a direction to the respondent to afford adequate opportunity.
  • It directed that the period from 07.09.2023 to 08.10.2025 (date of disposal) stand excluded for computing limitation under Section 73(10) of the KGST Act.
  • The Court expressly clarified that the order was passed in the peculiar/special facts of the case and was not to be treated as a precedent, and it did not decide the challenge to the validity of the Section 168A limitation-extension notifications.

Important Clarification

  • Where an assessee shows bona fide reasons for non-response to GST notices communicated only to its chartered accountant (without personal intimation to the assessee), a Court may set aside the consequential Section 73 order and remit the matter from an earlier procedural stage, while directing exclusion of the intervening litigation period from the limitation computation under Section 73(10) — though such relief may be granted as a fact-specific exception rather than as a binding precedent.

Sections Involved

  • Section 61 of the KGST Act, 2017 — scrutiny of returns, giving rise to Form GST ASMT-10.
  • Section 73 of the KGST/CGST Act, 2017 — determination of tax not involving fraud, including sub-section (10) prescribing the limitation for passing an order.
  • Section 168A of the CGST Act, 2017 — power to extend time limits in special circumstances (validity of notifications thereunder was raised but left undecided).

Decision – In Favour of

Allowed, in favour of the Assessee — order and notices set aside, matter remitted from the ASMT-10 stage with limitation exclusion directed; the challenge to Section 168A notifications was left undecided.

Case Details

Court: High Court of Karnataka at Bengaluru
Case No.: WP No. 26904 of 2025 (T-RES)
Neutral Citation: NC: 2025:KHC:39538
Coram: Hon'ble Mr. Justice S.R. Krishna Kumar
Date of Order: 8th October, 2025

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