Show cause notice quashed, reduced penalties, fresh GST order directed for compliance

The Court disposed of the writ petition filed against a show cause notice and orders issued by the Assistant Commissioner of State Tax. The impugned orders were quashed due to procedural non-compliance and violations of natural justice principles. The Assessing Officer admitted mistakes, leading to reduced penalties. The Court directed a fresh order in compliance with GST rules, with a timeframe for completion and refund of excess deposits. Coercive measures were stayed, bank accounts were unfrozen, and proceedings were to be conducted digitally. Parties were granted liberty to challenge the order, and interlocutory applications were addressed, ensuring a fair resolution.

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Issues:
1. Writ petition seeking relief against show cause notice and orders issued by Respondent No. 3.
2. Allegations of violation of principles of natural justice in the issuance of orders.
3. Rectification order issued by Respondent No. 3.
4. Mistake admitted by the authority below.
5. Previous judgment quashing an order of assessment.
6. Disposal of the present writ petition and mutually agreeable terms.
7. Directions provided for fresh order and compliance with natural justice principles.
8. Stay on coercive measures during pendency of the case.
9. Timeframe for the fresh order and reasons to be provided.
10. Refund of excess deposit if found.
11. De-freezing/de-attaching of bank accounts.
12. Reservation of liberty to challenge the order.
13. Directions for conducting proceedings through digital mode during the pandemic.
14. Disposal of interlocutory applications.

Analysis:
The petitioner sought relief through a writ petition against a show cause notice and orders issued by Respondent No. 3, Assistant Commissioner of State Tax. The orders were challenged on the grounds of non-compliance with the prescribed procedures under the CGST Rules, 2017 and BGST Rules, 2017, along with allegations of violation of natural justice principles. The Respondent admitted to mistakes in passing the impugned orders, leading to a reduction in the penalty amounts after a review. The Court noted the need for caution by the officer to avoid such errors in the future, emphasizing the impact on parties and public trust in the system.

In a previous judgment, a similar order of assessment was quashed by the Court, setting a precedent for the present case. The Court disposed of the writ petition based on mutually agreeable terms, including quashing the impugned orders and directing the Assessing Officer to pass a fresh order in compliance with GST rules. The petitioner agreed to appear before the Assessing Authority, and both parties were directed to cooperate and provide essential documents during the proceedings.

To ensure fairness, the Court directed no coercive measures to be taken against the petitioner during the case and set a timeframe for the fresh order's completion. The Assessing Authority was instructed to provide a speaking order with reasons and refund any excess deposit found. Additionally, the Court ordered the de-freezing/de-attaching of the petitioner's bank accounts and reserved liberty for parties to challenge the order or seek other remedies as per the law.

Given the current pandemic situation, proceedings were directed to be conducted through digital mode. The Court emphasized that all issues were left open, expressing hope for timely resolution of any further remedies taken by the parties. The writ petition was disposed of, and any interlocutory applications were also addressed. The respondents were tasked with communicating the order to the appropriate authority electronically.

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