Karnataka High Court Gives Another Chance in GST Matter Due to Lack of Hearing

The Karnataka High Court has given a company another opportunity to respond to a GST show cause notice, quashing an earlier decision by the tax authorities.

The petitioner company, Srinidhi Construction, had received a show cause notice from the GST authority alleging that the ITC claim by the company was erroneous. The authority had asked for documents like RA bills, work orders, agreement copies, profit and loss accounts, balance sheets, purchase bills, bank statements, etc. However, the show cause notice could not be replied by the company due to bonafide reasons. In the absence of a reply, the GST authority passed the final order. Therefore, the petitioner approached the High Court.

Before the High Court, the company requested another chance to make the submissions.

The High Court observed that the adjudicating officer did not have the benefit of the company’s response when passing the order. The Court said that the petitioner should be given a fair opportunity to explain their case.

As a result, the Court set aside the previous order and sent the matter back to the Assistant Commissioner for reconsideration.