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Tax Authorities Barred from Reopening Closed GST Assessment Due to Procedural Flaws and Prior Termination Order HC quashed GST assessment order for cash logistics business after finding procedural irregularities. Despite initial notice and subsequent order dropping ...
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Tax Authorities Barred from Reopening Closed GST Assessment Due to Procedural Flaws and Prior Termination Order
HC quashed GST assessment order for cash logistics business after finding procedural irregularities. Despite initial notice and subsequent order dropping proceedings, tax authorities issued a fresh assessment order imposing interest and penalties. The court determined the new order was unsustainable, particularly after an earlier order in Form ASMT-12 had effectively terminated the original proceedings. Writ petition was allowed without costs.
Issues: Challenge to assessment order dated 29.12.2023 under applicable GST enactments for assessment year 2017-2018.
Summary:
Issue 1: Alleged discrepancies in returns and subsequent proceedings The petitioner, engaged in cash logistics business, received a notice in Form ASMT-10 for alleged discrepancies in returns. The petitioner replied to the notice on 22.09.2023, and an order in Form ASMT-12 was issued on 27.09.2023 dropping the proceedings. However, the impugned assessment order was issued on 29.12.2023, leading to the challenge.
Issue 2: Petitioner's contentions The petitioner's counsel pointed out that the amounts demanded in the notice in Form ASMT-10 matched those in the impugned order. Referring to the order in Form ASMT-12, it was highlighted that no further action was required as per the GST authorities, making the assessment order unsustainable.
Issue 3: Respondent's argument The Government Advocate for the respondent stated a difference in amounts between the notice in Form ASMT-10 and the impugned assessment order, contradicting the petitioner's position.
Issue 4: Examination of assessment order Upon examination, it was found that the impugned assessment order confirmed the same demand amounts for SGST, CGST, and IGST as in the notice in Form ASMT-10. The only addition was the imposition of interest and penalty, making the continuation of proceedings post the order in Form ASMT-12 unsustainable.
Conclusion The High Court quashed the impugned assessment order, allowing the writ petition and closing connected miscellaneous petitions without costs.
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