Taxpayer Wins GST Challenge: Assessment Orders Overturned and Bank Accounts Freed After Procedural Review

HC ruled in favor of petitioner, setting aside best judgment assessment orders after GST registration restoration. Court directed 1st respondent to conduct fresh assessment based on filed returns and lifted bank account attachment orders. Writ petitions were allowed without imposing costs, providing relief to the taxpayer who had initially faced registration cancellation due to consultant's demise.

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Issues involved:
The issues involved in the judgment are the cancellation of GST registration, best judgment assessment orders, attachment of bank accounts, and restoration of GST registration.

Cancellation of GST registration:
The petitioner, a registered taxpayer under the GST Act, had their registration cancelled due to the sudden demise of their GST consultant, preventing them from filing returns. The cancellation was challenged as the petitioner later applied for revocation, which was allowed, and the registration was restored.

Best judgment assessment orders:
The 1st respondent initiated assessment proceedings against the petitioner for violating GST Act provisions. Subsequently, best judgment assessment orders were passed for multiple assessment years. The petitioner challenged these orders as they had filed returns after the restoration of their GST registration.

Attachment of bank accounts:
The respondents attached the petitioner's bank accounts without prior intimation or demand, based on the best judgment assessment orders. The petitioner sought to lift these attachment orders along with challenging the assessment orders.

Restoration of GST registration:
After the petitioner's registration was cancelled, they applied for revocation, which was granted, and the registration was restored by the 2nd respondent. Subsequently, the petitioner filed returns for the default assessment years.

Judgment:
The High Court held that since the petitioner filed returns for the assessment years after the restoration of their GST registration, the best judgment assessment orders were set aside. The 1st respondent was directed to make fresh assessment based on the returns filed by the petitioner. Consequently, the impugned orders were set aside, and the attachment orders on the petitioner's bank accounts were lifted. The writ petitions were allowed, and no costs were imposed.

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