Ex parte GST adjudication set aside and remitted for fresh reply-based reconsideration after notice response opportunity.
An ex parte adjudication order under the Karnataka Goods and Services Tax Act was interfered with because the taxpayer had not been given a proper opportunity to file a reply and meet the show-cause notice on merits. The High Court found it appropriate to restore the proceedings to the pre-reply stage, so the adjudicating authority could reconsider the matter after receiving the taxpayer's response. The order was therefore set aside and the matter remitted for fresh consideration, with directions for the taxpayer to appear and submit a reply.
Issues: Whether the ex parte adjudication order passed under Section 73(9) of the Karnataka Goods and Service Tax Act, 2017 was liable to be set aside and the matter remitted to the adjudicating authority for reconsideration from the stage of reply to the show-cause notice.
Analysis: The order of adjudication proceeded on the basis that the petitioner had not produced documents in support of the claimed exempted turnover and had not filed a reply to the show-cause notice or discharged payment voluntarily. The petitioner sought an opportunity to meet the allegations on merits by filing a reply, and the Court accepted that the impugned order had been passed ex parte. In those circumstances, and to afford the petitioner an opportunity to respond to the notice, the Court found it appropriate to interfere and restore the proceedings to the pre-reply stage.
Conclusion: The ex parte adjudication order was set aside and the matter was remitted to the respondent authority for reconsideration from the stage of reply to the show-cause notice, with the petitioner directed to appear and submit a reply.
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