Court quashes ex parte order, grants petitioner chance to respond. Fair opportunity emphasized.

The Court partly allowed the petition, quashing the ex parte order and restoring the proceedings to the respondent for reconsideration. The petitioner was granted an opportunity to show cause against the demands in the impugned order, with instructions to appear before the respondent on a specified date without further notice. The Court acknowledged the petitioner's genuine reasons for non-response to Show Cause Notices due to relocation and lack of regular access to the business premises, emphasizing the importance of providing a fair opportunity for the petitioner to address the issues.

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Issues involved:
The petitioner challenged the respondent's ex parte order u/s 73(1) of the Finance Act, 1994, due to failure to respond to Show Cause Notices after winding up the business and relocating to the United States. The main issue was the lack of regular access to the business premises leading to non-response to the notices.

Details of the Judgment:

Issue 1 - Failure to Respond to Show Cause Notices:
The petitioner, represented by Sri. M.N. Shankare Gowda, contended that due to relocating to the United States and closing the business in 2017, he did not have regular access to the business premises. The respondent's counsel, Sri. Aravind V. Chavan, did not dispute these circumstances but argued that the petitioner had a statutory obligation to inform the change in address. The Court acknowledged the petitioner's genuine reasons for non-response and held that the petitioner, pleading bonafides, should be given an opportunity to show cause against the demands in the impugned order.

Issue 2 - Court's Decision:
After considering the submissions, the Court noted that the respondent did not contest the reasons put forth by the petitioner. The Court opined that for a fair determination of liability, the petitioner should be granted an opportunity, subject to legal exceptions. Consequently, the petition was partly allowed, and the ex parte order dated 18.02.2022 was quashed. The proceedings were restored to the respondent for reconsideration, with a direction to extend an opportunity to the petitioner. The petitioner was instructed to appear before the respondent on 19.04.2023 without further notice to avail of this opportunity.

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