The Karnataka High Court ruled that an ex parte GST order can be set aside if the taxpayer had a valid reason for failing to appear, such as pregnancy and related medical complications.
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Justice Vijaykumar A. Patil of the Kalaburagi Bench allowed a writ petition filed by Soumya, proprietrix of Ganga Medical Stores, challenging the orders of the Deputy Commissioner of Commercial Taxes (Audit), Bidar, and the Commissioner of Central Tax and Central Excise. The Bench stated:
“The petitioner has offered sufficient explanation for her non-appearance before the authority during the adjudication proceedings.”
The applicant was given an audit notice for FY 2021-22. An intimation of tax demand followed u/s 73(5) of the Central Goods and Services Tax Act, along with an SCN dated 24 September 2025. Thereafter, an order was passed by the adjudicating authority confirming the tax, interest, and penalty.
The applicant mentioned that she could not appear in the proceedings because of her pregnancy and related medical complications. The order had been passed ex parte, and the medical records given by her supported the explanation for her non-appearance.
The Revenue argued that the petitioner had acknowledged receipt of the notice and that an alternative legal remedy was available to them u/s 107 of the GST Act.
The bench placed reliance on the coordinate bench decision in Sri. Siddappa v. Assistant Commissioner and said that the applicant should be provided with a chance to file her reply and supporting documents.
Therefore, the HC quashed the adjudication order, on the condition that the applicant would deposit 10% of the tax demanded.
It remanded the matter back to the Adjudicating Authority at the stage of submission of replies and supporting documents.
| Case Title | M/s Ganga Medical Stores vs. Deputy Commissioner of Commercial Taxes |
| Case No. | 202258 OF 2026 (T-RES) |
| For Petitioner | Smt. Swati and Smt. Rama P.V. |
| For Respondent | Sri. Mallikarjun Sahukar and Sri. Girish S. Hulimani |
| Karnataka High Court | Read Order |
