Karnataka HC Cancels GST Orders Citing Petitioner’s Inability to Answer Due to Father’s Illness and Demise

The Karnataka High Court quelled the summary and ex-parte order, noting that the applicant was unable to respond to the GST show-cause notices due to his father’s prolonged illness and eventual passing on 13.02.2024.

The applicant/taxpayer, Nakoda Auto Distributors, approached the court under Article 226, contesting the ex-parte order dated 31.10.2023 and the summary order issued dated 16.11.2023.

As per the applicant, the father of the partners was diagnosed with cancer in April 2023 and was hospitalized. On 13.02.2024, he passed away, and a copy of the death certificate was furnished.

The SCN was issued dated 29.09.2023 and 30.09.2023, though the applicant cannot answer or attend the proceedings due to the poor medical condition of his father. He asked for a chance to submit an objection and take part in the proceedings under section 73 of the KGST Act.

The Additional Government Advocate(AGA) in answer furnished that the notices were issued as per Section 73 of the KGST Act, and the authority was right in proceeding with the case. He requested the Court to pass a suitable order.

A single-member bench, including S.G. Pandit (Judge), noted that the applicant was not able to answer the SCN dated 29.09.2023 and 30.09.2023 as he was attending to his father, who was experiencing cancer treatment and succumbed to cancer dated 13.02.2024. Medical records and the death certificate were provided in support.

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The court, acknowledging these situations, quashed the ex-parte orders on 31.10.2023 and 16.11.2023 and granted the applicant 30 days to submit the objections. It asked the applicant to appear before the respondent authority dated 06.03.2025.

The court mentioned that the applicant cannot raise the problem of limitation and that any recovered amount via attachment shall be within the final decision of the authority.