GST Assessment Orders Quashed for Section 75(4) Non-Compliance, Fresh Orders Pending After Rs. 7.5 Lakh Deposit

The HC quashed impugned GST assessment orders for 2018-2019 to 2021-2022 that were challenged for non-compliance with Section 75(4) requirements. The petitioner claimed to have replied to show cause notices before expiry of 30 days, while respondent maintained no reply was received before orders were passed. The court found the petitioner attempted to reply only after orders were issued. Despite available alternative remedy under Section 107, the court conditionally quashed the orders, requiring petitioner to deposit Rs. 7.5 lakhs within 30 days. Upon deposit, respondents must pass fresh orders after granting a hearing within 60 days. If deposit isn't made, the original orders would automatically revive.

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Issues: Challenge to impugned orders for assessment years 2018-2019 to 2021-2022 based on non-compliance of Section 75(4) of Goods and Service Tax enactments.

In this case, the petitioner challenged the impugned orders for the assessment years 2018-2019 to 2021-2022, contending that they were passed without complying with the mandatory requirements of Section 75(4) of the Goods and Service Tax enactments. The petitioner argued that they had replied to the show cause notices before the expiry of 30 days, even though there was no dated acknowledgment for the reply filed. The respondent, on the other hand, claimed that the petitioner had not replied to the show cause notices dated 28.09.2021 before the impugned orders were passed on 09.11.2021. The respondent presented a copy of the belated reply filed on 12.11.2021, which was sealed by the department. The respondent urged the court to dismiss the writ petition and advised the petitioner to seek recourse through an appeal before the Appellate Commissioner under Section 107 of the respective Goods and Service Tax Act, 2017.

Upon considering the arguments from both sides and examining the records, the court noted that the petitioner's attempt to reply to the show cause notice was made after the impugned orders had been issued. The court highlighted that the petitioner had an alternative remedy available before the Appellate Commissioner under Section 107 of the Goods and Service Tax enactments. However, taking into account that the petitioner would need to deposit only 10% of the amount as a pre-deposit condition, the court decided to quash the impugned orders on the condition that the petitioner pays a sum of Rs. 7.5 lakhs within 30 days from receiving a copy of the order. If the deposit is made within the specified period, the respondents were directed to pass a fresh order after granting a hearing to the petitioner within 60 days. The quashed orders were to be treated as corrigendum to the show cause notices, allowing the petitioner to provide a proper reply. Failure to deposit the prescribed amount within 30 days would result in the impugned orders being revived automatically without further intervention from the court.

In conclusion, the writ petition was disposed of with the above observations, without imposing any costs. The connected Miscellaneous Petitions were also closed in light of the judgment.

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