Taxpayer Wins Challenge Against Arbitrary Tax Notice, Demands Accountability and Transparent Grievance Redressal

HC ruled in favor of taxpayer, criticizing state tax officers for issuing a show cause notice despite filed GST returns. The court highlighted officers' lack of response to multiple representations and directed the Commissioner of State Tax to file a clear affidavit addressing the Petitioner's concerns within two weeks, emphasizing prompt grievance resolution and officer accountability.

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Issues involved:
The issues involved in the judgment are non-response to representations by state officers, issuance of show cause notice despite filing GST returns, inaction on part of officers, accountability of officers, and correctness of acknowledgments of filed returns.

Non-response to representations by state officers:
The court observed that more than 20 representations made by the Petitioner to state officers regarding filed GST returns were not responded to. Despite informing the officers about the filing and issues with the electronic portal, a show cause notice was issued to the Petitioner for non-filing of returns. The court criticized the inaction of the officers and emphasized the need for addressing taxpayer grievances promptly.

Issuance of show cause notice despite filing GST returns:
The Petitioner had informed the concerned officers about the filed returns and even submitted acknowledgments as evidence. However, a show cause notice was issued alleging non-filing. The court expressed concern over the officers' approach and highlighted that no assessee should have to litigate against the government for issues that can be resolved at the departmental level.

Inaction on part of officers:
The court noted the lack of response from state officers to the Petitioner's representations, leading the Petitioner to approach Central Government Ministers. The court emphasized the importance of officers justifying their actions and addressing taxpayer concerns promptly to avoid unwarranted litigation.

Accountability of officers:
The court highlighted the accountability of officers not only to the assessee but also to the court. It questioned the officers' silence in not responding to the Petitioner's representations and directed the Commissioner of State Tax to file a clear affidavit addressing the issues raised by the Petitioner and justifying the actions taken.

Correctness of acknowledgments of filed returns:
The court noted a stand taken in the reply affidavit questioning the correctness of acknowledgments of returns filed by the Petitioner. It directed the Commissioner of State Tax to file a clear affidavit after verifying the portal and system available to the Petitioner. The court required the affidavit to address the merits of the Petitioner's contentions and be filed within two weeks.

Separate Judgement by Judges:
No separate judgment was delivered by the judges in this case.

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