Bhoo Developers filed the case against the tax authorities in the High Court of Karnataka for a GST demand. U/s 73(9) of the KGST Act, 2017, the tax authorities had passed an order raising a demand against Bhoo Developers. The order was issued after an audit discovered alleged non-payment of GST and development charges payable to the landowner.
The department mentioned that even after various chances, the company did not respond to the show-cause notice. Consequently, the authority proceeded to confirm the tax demand.
The applicant before the High Court contended that it did not respond to the SCN due to a genuine and unintentional oversight. The applicant further stated that if the order were to remain in effect, it would result in significant financial hardship.
A request was sought by the applicant before the court to furnish another chance to answer to the notice, and asked for the case to be sent back to the tax authority for fresh consideration.
The Additional Government Advocate said that the Show Cause Notice (SCN) had been accurately served. He claimed that the company alone was liable for failing to participate in the proceedings.
Decision of the High Court
Post acknowledging all the merits of the case, the HC felt that the applicant must be furnished one more chance to present its case.
Therefore, the court cited, “The matter is remitted, providing an opportunity to the petitioner to make a reply to the show cause notice.”
Read Also: Karnataka HC Quashes GST Demand, Upholds Right to Personal Hearing Under Section 75(4)
However, the Court levied a condition that the applicant should deposit 10% of the tax demanded before the next hearing date. Beyond this, the court asked the applicant to appear before the authority on 25/05/2026, without waiting for further notice.
| Case Title | M/S. Bhoo Developers vs. Deputy Commissioner of Commercial Taxes |
| Case No. | NO.9575 OF 2026 (T-RES) |
| For Petitioner | Sri Ankith Jain |
| For Respondent | Sri. K. Hema Kumar |
| Karnataka High Court | Read Order |
