Tax Assessment Order Quashed: Procedural Flaws Expose Systemic Gaps in GST Compliance and Taxpayer Rights

HC quashed the assessment order due to procedural irregularities. The petitioner was unaware of prior notices and faced a GST return mismatch. Court directed remittance of 10% disputed tax, filing of reply within two weeks, and instructed tax authorities to provide personal hearing and issue a fresh assessment order within two months, without imposing costs.

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Issues involved: Challenge to assessment order based on lack of awareness of proceedings and alleged mismatch in GST returns.

Challenge based on lack of awareness of proceedings:
The petitioner engaged a consultant for GST compliance who failed to inform about the assessment order. The petitioner was unaware of the intimation or show cause notice preceding the assessment order which was uploaded on the GST portal. The petitioner filed a writ petition claiming lack of awareness.

Alleged mismatch in GST returns:
The tax demand was based on a mismatch between GSTR-3B and GSTR-1 return, as well as GSTR-3B and GSTR-7 returns due to an inadvertent error in categorizing transactions. The petitioner was ready to remit 10% of the disputed tax demand for remand.

Court's Decision:
The assessment order was quashed as it was issued without hearing the petitioner and considering explanations or supporting documents. The petitioner was directed to remit 10% of the disputed tax demand for remand and file a reply to the show cause notice within two weeks. The assessing officer was instructed to provide a reasonable opportunity, including a personal hearing, and issue a fresh assessment order within two months. The case was disposed of with no costs incurred.

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