IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13^TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.27245 OF 2025 (T-RES)

BETWEEN:

M/S. ASLAM HABIB (REPRESENTED BY ITS PROPRIETOR MR. ASLAM HABIB)

SONA PLAZA, O.T.ROAD, SHIMOGA SHIVAMOGGA – 577 202.

…PETITIONER (BY SRI. VENKATANARAYANA G.M., ADVOCATE)

AND:

THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT-5)

VANIJYA THERIGE BHAVANA, NEAR 100FT ROAD, 12^TH CROSS, ‘A’ BLOCK, GOPALAGOWDA EXTENSION, SHIMOGA – 577 205.

…RESPONDENT Digitally (BY SRI. HEMA KUMAR, AGA)

signed by CHANDANA B M THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE Location: CONSTITUTION PRAYING TO SET ASIDE THE IMPUGNED ORDER FORM High Court of GST DRC-07, REFERENCE NO.ZD2908241174439 DATED 31.08.2024 Karnataka ANNEXURE-A PASSED BY THE RESPONDENT AS BEING VOID, ARBITRARY, ILLEGAL, VIOLATIVE OF PRINCIPLES OF NATURAL JUSTICE, AND CONSEQUENTLY SET ASIDE THE SAME.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks the following reliefs:

"a. Issue a writ of certiorari, thereby setting aside the Impugned Order Form GST DRC-07, Reference No.ZD2908241174439 dated 31.08.2024 [Annexure-A] passed by the respondent as being void, arbitrary, illegal violative of principles of natural justice and consequently, set aside the same.

b. Remand the matter to the adjudicating authority for fresh consideration.

c. Pass any other or further orders as this Hon'ble Court may deem fit and proper in the interest of justice."

2. Heard learned counsel for the petitioner and learned AGA for the respondent and perused the material on record.

3. A perusal of material on record will indicate that pursuant to the notice in Form GST DRC – 01A dated 18.05.2024, the respondent issued a show-cause notice dated 23.05.2024 under Section 73(1) of the CGST / KGST Act, 2017 alleging that the petitioner had claimed ineligible ITC in contravention of the provisions of the Act. The petitioner filed his reply dated 16.07.2024 and sought for an opportunity of personal hearing. Subsequently, the respondent passed the impugned order dated 31.08.2024 under Section 73 of the KGST Act, 2017 confirming the total demand of Rs.18,68,046/- including the tax, interest and penalty.

4. The learned counsel for the petitioner submits that though request for an opportunity of personal hearing was made by the petitioner, the respondent-revenue without granting the same proceeded to pass the impugned order and thereby violated the principles of natural justice. Aggrieved by the said order, the petitioner having no option has approached this Court by way of the present petition interalia contending that an opportunity of personal hearing was not granted to the petitioner before passing the impugned order, which is in violation of principles of natural justice.

5. Per contra, learned AGA for the respondent submits that there is no merit in the petition and the same is liable to be dismissed.

6. Though several contentions have been urged by both sides, the counsel for the petitioner submits that the petitioner had filed its reply / documents to the aforesaid notices and had also sought for an opportunity of personal hearing. It is further submitted that the respondent-revenue without granting an opportunity of personal hearing has passed the impugned ex-parte order.

7. Under these circumstances, having regard to the specific assertion on the part of the petitioner that he was not provided with sufficient opportunity to put-forth its claim and contest the proceedings which culminated in the impugned order, I deem it just and appropriate to adopt a justice oriented approach and provide one more opportunity to the petitioner by setting aside the impugned order dated 31.08.2024 and remitting the matter back to the respondent for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting