Tax Assessment Order Invalidated: Procedural Fairness Prevails in Notice Dispute, Allowing Reassessment and Opportunity to Respond

HC quashed tax assessment order due to petitioner's lack of effective notice and opportunity to contest. The court remanded the matter for re-assessment, directing the petitioner to participate in proceedings within a specified timeline. The judgment provides an opportunity to address turnover discrepancies and challenges in GST notice communication, without imposing costs on either party.

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Issues involved:
The petitioner challenges an assessment order imposing tax liability, interest, and penalty. The main contention is the lack of awareness regarding notices and the opportunity to contest the claim based on turnover differences between Form GSTR-2B and GSTR-3B.

Assessment Order Challenge:
The petitioner, engaged in trading, claims lack of awareness of notices due to reliance on a GST practitioner. An affidavit from the consultant supports the claim that notices were not communicated effectively. The petitioner seeks an opportunity to contest the claim based on turnover differences.

Contentions of the Parties:
The petitioner's counsel argues for the petitioner to have a chance to contest the claim, emphasizing the reliance on the consultant and lack of awareness of the notices. The Additional Government Pleader contends that all notices were available on the GST Department portal, and the petitioner had the option of a statutory appeal which was not utilized.

Notice and Response Analysis:
Notices in Form GST-DRC-01A and Form GST-DRC-01 were issued to the petitioner, followed by a personal hearing which the petitioner did not respond to. The petitioner's explanation revolves around the consultant's failure to inform about the notices, highlighting a discrepancy in access to the notices through different tabs.

Judgment and Remand:
The court acknowledges the petitioner's lack of opportunity to respond to the tax department's claim due to the consultant's alleged oversight. The impugned order is quashed, and the matter is remanded for re-consideration, granting the petitioner a chance to participate in the proceedings before the assessing officer within a specified timeline.

Conclusion:
The court quashes the impugned order, directing re-assessment within a specific timeframe, allowing the petitioner to participate in the proceedings and make submissions. The case is disposed of without costs, with a clear directive for re-assessment and submission deadlines to be adhered to.

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