Tax Assessment Order Quashed After Notice Failed to Provide Mandatory 30-Day Response Period Before Ex Parte Proceedings

The HC quashed an ex parte assessment order imposing a Rs. 59,02,502 liability for FY 2019-20 because statutory requirements were not followed. The assessment notice failed to provide the mandatory 30-day response period before proceeding ex parte. The court also set aside the subsequent demand order and appellate order that had affirmed the assessment. The HC directed the assessing officer to issue a fresh notice complying with statutory provisions and to conduct proceedings according to law. The petitioner's claim for Input Tax Credit of Rs. 35,70,110.12 will be considered in the fresh assessment.

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Issues:
Challenge to assessment order, demand order, appellate order, coercive action, refund of pre-deposit, fresh assessment order, legality of assessment and appellate orders, entitlement to Input Tax Credit, relief sought, statutory compliance.

Analysis:
The petitioner sought various reliefs through the writ petition, including quashing the assessment order, demand order, and appellate order for the financial year 2019-20. The assessment order was challenged as being ex parte, imposing a total liability of Rs. 59,02,502. The demand order was issued under specific rules, leading to the imposition of the same total liability. The appellate order affirmed the assessment order, rejecting the petitioner's appeal. Additionally, the petitioner sought a writ to prevent coercive actions, refund of a pre-deposit amount, and a fresh assessment order considering invoices and tax liabilities. The petitioner also claimed entitlement to Input Tax Credit of Rs. 35,70,110.12 for the assessment year 2019-20.

The Court noted that the minimum statutory period of 30 days required for payment was not provided to the petitioner before the assessment order was passed ex parte. The notice directing the petitioner to file a reply within a shorter period did not comply with the statutory requirement. Consequently, the Court quashed the notice and assessment order, directing the assessing officer to issue a fresh notice and pass an order in compliance with the law. The Court emphasized the importance of following statutory provisions and ensuring due process in all proceedings.

In conclusion, the Court allowed the petition, indicating that the petitioner would cooperate fully. Any interlocutory applications were also disposed of accordingly. The judgment highlights the significance of adherence to statutory timelines and procedural fairness in assessment proceedings. The Court's decision underscores the importance of affording parties their due rights and opportunities for a fair hearing in tax matters.

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