Tax Assessment Order Invalidated: Dual Proceedings Quashed, Fresh Evaluation Ordered with Rs. 2 Lakh Remittance HC quashed the assessment order challenging two separate proceedings for the same tax period. The court directed the petitioner to remit Rs. 2 lakhs and ...
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Tax Assessment Order Invalidated: Dual Proceedings Quashed, Fresh Evaluation Ordered with Rs. 2 Lakh Remittance
HC quashed the assessment order challenging two separate proceedings for the same tax period. The court directed the petitioner to remit Rs. 2 lakhs and granted an opportunity for fresh assessment. The Assessing Officer was instructed to provide reasonable opportunity for re-evaluation within two months, disposing the writ petition without costs.
Issues involved: Challenge to assessment order on grounds of initiating two separate proceedings for the same assessment period and issue.
Summary: 1. The petitioner, a trader in iron and steel, challenged an assessment order dated 13.07.2023, issued after another assessment order dated 29.09.2023 for the same assessment period, both related to a disparity between GSTR 3B and GSTR 2A returns.
2. The petitioner communicated payment of Rs. 1.90 lakhs for the disparity and a rectification order was issued for the second assessment order. The petitioner argued that the impugned order is not sustainable as it relates to the same period and issue.
3. The respondent, represented by Mr. V. Prashanth Kiran, acknowledged the two proceedings initiated for the same period and stated that the confirmed demand under the impugned order was Rs. 21,95,668/- towards CGST and SGST, along with interest and penalty. He contended that the payment of Rs. 1.90 lakhs did not discharge the liability.
4. The petitioner agreed to remit Rs. 2 lakhs towards the disputed tax liability under the impugned order dated 13.07.2023.
5. The Court noted the confusion caused by the two separate proceedings and the unclear rectification order. The petitioner was granted another opportunity to explain the disparity, with the condition to remit Rs. 2 lakhs within two weeks in addition to the earlier payment of Rs. 1.90 lakhs.
6. The impugned order was quashed subject to the mentioned condition, and the Assessing Officer was directed to provide a reasonable opportunity to the petitioner for a fresh assessment order within two months.
7. The writ petition was disposed of with no costs, and connected Writ Miscellaneous Petitions were closed.
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