Issuance of assessment order and GST registration cancellation allowed conditional quash on 25% deposit, then fresh consideration on merits.

Issuance of assessment order and cancellation of GST registration where notices were issued and the taxpayer did not participate: the impugned assessment and registration-cancellation orders were preceded by notices to which there was no reply. The tribunal allowed relief by permitting conditional quash of the impugned orders on payment of 25% of the disputed tax in cash; on such deposit the orders stand quashed and the taxpayer is granted liberty to file a reply, with directions for authorities to pass fresh orders on merits and in accordance with law.

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Issues: Whether the impugned assessment orders may be quashed and relief granted to the petitioner despite non-participation in assessment proceedings and whether interim relief in the form of defreezing bank accounts subject to appropriation can be ordered.

Analysis: The impugned assessment orders were preceded by notices to which the petitioner did not reply and were challenged on grounds including reliance on notification under Section 168A and prior cancellation of registration. The orders were passed before a later communication and the petitions engage the appropriateness of interference where the assessee did not participate in earlier proceedings. Consistent judicial practice permits quashing of assessment orders on condition of a pre-deposit to enable fresh consideration on merits; similar conditional relief is applicable here. Directions regarding appropriation of the pre-deposit and de-freezing of bank accounts are incidental to enabling fresh adjudication.

Conclusion: The impugned assessment orders are quashed on condition that the petitioner deposits 25% of the disputed tax in cash; upon such deposit the respondents are directed to pass fresh orders on merits and in accordance with law and the petitioner's bank accounts shall be de-freezed subject to appropriation of the 25% pre-deposit.

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