2024 (1) TMI 1146 - HC - GST

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, ... Opportunity to be heard - service of statutory notices via GST portal - non-receipt of notice due to intermediary/consultant - quashing and remand for fresh consideration - re-assessment with reasoned decision - limitation on opportunity to make submissionsOpportunity to be heard - service of statutory notices via GST portal - non-receipt of notice due to intermediary/consultant - Validity of the assessment order in light of the assessee's non-participation caused by asserted non-receipt of notices placed on the GST portal - HELD THAT: - The assessment order records issuance of intimation in Form DRC-01A, a subsequent show cause notice in Form DRC-01 and a personal hearing which the assessee did not respond to or attend. The assessee attributes non-participation to reliance on a GST consultant who did not inform the assessee, and the consultant avers that the notices were accessible only under the portal's additional notices tab and not under regular returns. Although the explanations are not wholly persuasive, the Court recognised that a small registered trader was effectively deprived of an opportunity to respond to the discrepancy alleged between Form GSTR-2B and Form GSTR-3B. In the interest of fairness the Court found interference with the impugned order warranted and directed that the order be quashed and the matter remitted for fresh consideration, limiting the opportunity to the assessee's participation before the assessing officer and making submissions within a specified short period. [Paras 5, 6, 7, 8]Impugned assessment order quashed and remitted for re-consideration to afford the assessee a limited opportunity to make submissions before the assessing officer.Re-assessment with reasoned decision - limitation on opportunity to make submissions - Scope and timetable for the reassessment proceedings on remand - HELD THAT: - The Court limited the relief to an opportunity for the petitioner to participate and make submissions to the assessing officer; submissions must be filed within two weeks from receipt of this order and the assessing officer must complete reassessment by issuing a reasoned decision within two months from receipt of this order. The directions confine the remedy to fresh consideration rather than re-opening factual issues beyond the scope of submissions and reasoned reconsideration by the officer. [Paras 8]Reassessment directed with specified timelines: submissions within two weeks and completion with a reasoned order within two months.Final Conclusion: The impugned assessment order is quashed and the matter is remanded for fresh consideration; the petitioner is permitted to make submissions within two weeks of receipt of this order and the assessing officer is directed to complete reassessment by a reasoned order within two months. No costs. 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.