SABERNI SOFTWARE LLP V. ASSISTANT COMMISSIONER OF CENTRAL TAX GST COMMISSIONERATE, DIVISION -6, BANGALORE WEST

WP/26264/2024

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The case involves M/s Saberni Software LLP, represented by its partner Sri. Umang Sharma, who filed a writ petition against the Assistant Commissioner of Central Tax GST Commissionerate, Division -6, Bangalore West. The petitioner sought to quash an order passed by the respondent, which was based on a show cause notice under Section 73 of the CGST Act, 2017, concerning service tax for the financial year 2015-2016. The petitioner contended that the show cause notice was not served properly, as it was not sent to the registered address, leading to an inability to respond or participate in the proceedings, which resulted in an ex-parte order against them.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 798176 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 01-02-2025
• Assessment Year: misc
• Laws Referred To: Finance Act, 1994, CGST Act, 2017
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ARAVIND CHAVAN
• Assessee Lawyers: R CHANDRASHEKAR; KASHINATH KALMATH
• Keywords: Ex parte order; Service tax; Show cause notice; Writ petition
• Section: 69; 73

Judgement Text

" - 1 - NC: 2025:KHC:4646 WP No. 26264 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE S.G.PANDIT WRIT PETITION NO. 26264 OF 2024 (T-RES) BETWEEN: M/S SABERNI SOFTWARE LLP A LIMITED PARTNERSHIP, REPRESENTED BY ITS PARTNER SRI. UMANG SHARMA, S/O S.K. SHARMA, AGED ABOUT 42 YEARS, NO.SF-601, SRIRAM SURABHI APARTMENTS, OFF KANAKAPURA ROAD, BANGALORE - 560 062. NOW AT NO.K-1903, POORVA HIGH LAND APARTMENT, KANAKAPURA ROAD, BANGALORE - 560062. …PETITIONER (BY SRI.R.CHANDRASHEKAR AND SRI.KASHINATH KALMATH, ADVOCATES FOR SRI. RAMA MURTHY R, ADVOCATE) AND: THE ASSISTANT COMMISSIONER OF CENTRAL TAX GST COMMISSIONERATE, DIVISION -6, BANGALORE WEST COMMISSIONERATE, 1ST FLOOR, BMTC BUS STAND, KANAKAPURA ROAD, BANASHANKARI, BANGALORE - 560070. …RESPONDENT (BY SRI.ARAVIND.V.CHAVAN, ADVOCATE) Digitally signed by REKHA R Location: High Court of Karnataka - 2 - NC: 2025:KHC:4646 WP No. 26264 of 2024 THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF THE RESPONDENT DTD 16.12.2021 PASSED IN NO. 0IO NO. 35/2021-22 (ANNEXURE-H). THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT ORAL ORDER Heard learned counsel Sri.R.Chandrashekar, Sri.Kashinath Kalmath for Sri.Rama Murthy.R, learned counsel for petitioner and Sri.Aravind V.Chavan, learned counsel for respondent. 2. Perused the entire writ papers. 3. Learned counsel for petitioner would submit that petitioner is a limited liability partnership registered under Section 69 of the Finance Act, 1994. Further, it is submitted that for the financial years 2015-2016, the petitioner filed -Nil- returns for the purpose of service tax. It is submitted that based on Income tax returns filed by the petitioner, respondent issued show cause notice dated - 3 - NC: 2025:KHC:4646 WP No. 26264 of 2024 25.09.2020 under Section 73 of the CGST Act, 2017. It is the submission of the learned counsel for the petitioner that the said show cause notice was not served on the petitioner and the petitioner could not submit objections to the show cause notice and also could not participate in the further proceedings. 4. It is the submission that the show cause notice was not addressed to the address indicated in the registration certificate and as such the petitioner was not served with the show cause notice. However, learned counsel prays for an opportunity to file objections and for participating in the proceedings. 5. Learned counsel Sri.Aravind V.Chavan appearing for respondent would submit that show cause notice was sent to the registered address and also was uploaded in the portal of the department. It is also submitted that the petitioner has failed to inform change of address if any and in that view of the matter, petitioner - 4 - NC: 2025:KHC:4646 WP No. 26264 of 2024 cannot say that he had no opportunity. However, he admitted that it is an ex-parte order. 6. However, having heard the learned counsel for the parties, I am of the opinion that the petitioner ought to be given an opportunity to file objections to the show cause notice dated 25.09.2020 under Section 73 of the 2017 Act. Admittedly, it is an ex-parte order. As show cause notice dated 25.09.2020 appears not to have been served on the petitioner and as proceedings initiated under Section 73 of the 2017 Act would adversely affect the petitioner, in the said facts and circumstances he needs to be provided an opportunity. In the above background, the following: ORDER a. Writ petition is allowed. b. The impugned order in No.OIO No.35/2021-22 dated 16.12.2021 (Annexure-H) is hereby quashed. - 5 - NC: 2025:KHC:4646 WP No. 26264 of 2024 c. Petitioner is directed to appear before the respondent-authority on 28.02.2025 and respondent-authority shall make available the show cause notice dated 25.09.2020 to the petitioner afford him an opportunity to file objections and proceed further in the matter in accordance with law and pass appropriate orders. Sd/- (S.G.PANDIT) JUDGE RR List No.: 1 Sl No.: 4 "