Ex-parte Tax Order Set Aside; Proprietor to Present Case Anew After Pregnancy Hindered Initial Response
In a significant development, the Karnataka High Court, Kalaburagi Bench, has set aside an ex-parte adjudication order issued against M/s Ganga Medical Stores under the Goods and Services Tax Act, 2017, citing the proprietor's inability to participate in the proceedings due to pregnancy. The order, initially passed by the Deputy Commissioner of Commercial Taxes (Audit), DGSTO, Bidar, demanded tax, penalty, and interest for the financial year 2021-22.
The petitioner, represented by Advocates Smt. Swati and Smt. Rama P.V., contended that the proprietor was unable to respond to the show-cause notice and participate in the adjudication due to pregnancy-related medical conditions, supported by medical records. The petitioner sought a writ to quash the ex-parte order and the show-cause notice, arguing that the statutory appeal period had expired, leaving the writ petition as the viable recourse.
The High Court, presided over by Justice Vijaykumar A. Patil, acknowledged the petitioner's medical condition and the procedural history leading to the ex-parte order. The Court noted that the petitioner had provided sufficient explanation for non-appearance and cited a precedent where a similar case was remanded for fresh consideration.
In its judgment, the Court allowed the writ petition, setting aside the impugned order subject to the petitioner depositing 10% of the demanded tax by October 14, 2026. The case was remanded to the Deputy Commissioner for reconsideration, starting from the stage of filing replies and submitting documents. The petitioner is directed to appear before the authority on October 14, 2026, to ensure compliance and avoid the revival of the ex-parte order.
The Court's decision underscores the importance of considering genuine medical and personal circumstances in legal proceedings and highlights the judiciary's role in ensuring fair access to justice.
Bottom Line :
GST - Ex-parte assessment/adjudication order under Section 73 set aside in writ jurisdiction where proprietor could not participate due to pregnancy supported by medical records - Matter remanded for fresh consideration subject to deposit of 10% of tax demanded - Though alternative remedy of appeal existed, writ held entertainable as limitation for appeal had expired and sufficient explanation for non-appearance was shown.
Statutory provision(s): Goods and Services Tax Act, 2017 Sections 73, 107
