Opportunity to Reply Restored: High Court Remits ITC Dispute for Reconsideration
The High Court has set aside the ex parte GST adjudication order against the petitioner and remitted the matter for fresh consideration.
The present application has been filed by M/s G.S and Company (Petitioner) against GST Authorities (Respondent) in the High Court of Karnataka, seeking to set aside the ex parte adjudication order passed by the GST authorities and to grant an opportunity to submit a reply and be heard in the matter.
Background of the Case
The assessee argued during the hearing in the High Court that the order was passed ex parte, as they had failed to submit a reply to the show-cause notice due to a bona fide lapse.
The petitioner also stated that GST dues had already been recovered pursuant to the order and now sought an opportunity to present its case.
High Court’s Decision
The High Court allowed the petitioner’s request to amend the petition to challenge the adjudication order and to raise additional grounds.
After considering all the facts, the High Court observed that the GST authorities had alleged wrongful availment of Input Tax Credit (ITC). However, since the order had been passed ex parte, the Court decided to grant an opportunity to the petitioner to respond.
Accordingly, the Court set aside the adjudication order and sent the case back to the Assistant Commissioner (GST) for fresh consideration. The court also directed the petitioner to appear before the authority on May 13, 2026. All contentions have been kept open.
The Court further clarified that the amount already recovered will be subject to the outcome of the fresh proceedings. It also set aside the attachment of the petitioner’s bank accounts that had been initiated for recovery. With these directions, the writ petition was disposed of.
Citation: M/s G.S And Company Vs GST (Karnataka High Court); WP No. 8855 of 2026; 09/04/2026.
