Small Business Owner Wins GST Tax Dispute, Ordered to Pay 10% and Receive Fresh Assessment Within Two Months

HC examined a GST assessment challenge where a small business owner contested a tax order due to consultant's non-communication. The court quashed the original assessment order, directing the petitioner to remit 10% of disputed tax within two weeks and allowing submission of a reply to the show cause notice. A fresh assessment order must be issued within two months, and the bank attachment was immediately lifted.

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Issues:
Challenge to assessment order and bank account attachment.

Analysis:
The petitioner, a registered person under GST enactments, claims unawareness of the assessment and attachment orders until the bank attachment was notified. The petitioner, conducting business on a small scale, had engaged a consultant for GST compliance who failed to keep the petitioner informed.

Legal Argument:
The petitioner argues u/s 73(2) of the TNGST Act for a three-month gap between show cause notice and assessment order. The petitioner offers to remit 10% of disputed tax demand for remand.

Government's Response:
The Government Advocate states that the petitioner had multiple opportunities to contest the tax demand starting with notice in Form ASMT 10.

Court's Decision:
The Court clarifies that u/s 73(2) of the TNGST Act, there is no requirement for a three-month interval between show cause notice and assessment order. The Court notes the petitioner's non-participation in proceedings but orders a fresh assessment providing an opportunity for the petitioner to be heard.

Judgment:
The assessment order dated 18.10.2023 is quashed with the condition that the petitioner remits 10% of disputed tax demand within two weeks. The petitioner can submit a reply to the show cause notice within this period. Upon satisfaction of the remittance, a fresh assessment order must be issued within two months. The bank attachment is to be lifted immediately. The writ petition is disposed of with no costs.

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