Tax Order Quashed: Procedural Lapses Invalidate Ex-Parte Decision, Ensuring Fair Hearing and Opportunity to Respond

HC found procedural irregularities in ex-parte tax order under GST Act. Petitioner successfully challenged the order due to lack of proper communication and opportunity to respond. Court quashed the existing order, directed fresh proceedings with proper notice, and allowed Petitioner four weeks to file reply. Case remanded without cost implications.

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Issues involved:
The primary contention of the Petitioner is the ex-parte order passed under section 73 of the Central Goods and Service Tax Act. The Petitioner alleges lack of communication and opportunity to respond to the show cause notice.

Summary:
The Petitioner, registered under different states, contends that returns sent for scrutiny assessment led to notices being issued by Respondent No. 3. Despite a show cause notice issued in April 2022, an order was passed in June 2022 without the Petitioner's knowledge. The Petitioner learned of the order in January 2023 and deposited the specified amount under protest. Alleging lack of opportunity to respond or oral hearing, the Petitioner seeks to challenge the order.

The Court, after hearing both parties and examining the evidence, finds merit in the Petitioner's contentions. It notes the procedure for viewing/downloading notices on the portal and concludes that the Petitioner was not at fault for not noticing the order. Emphasizing the lack of opportunity for the Petitioner to respond, the Court deems it just to quash the orders and remand the proceedings for a fresh order with proper opportunity for the Petitioner to reply and be heard.

The Court directs the Petitioner to file a reply to the show cause notice within four weeks. The proceedings are disposed of, with all contentions left open, and the case is remanded to the designated officer for further action. No costs are awarded in this matter.

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