Tax Challenge Upheld: Petitioner Wins Partial Relief with 20% Deposit, Fresh Hearing Ordered Under Revised Assessment Procedure

HC allowed the petitioner's challenge to the tax demand order, remanding the case for reconsideration. The court directed the petitioner to deposit 20% of disputed tax and permitted submission of additional documents proving goods movement. The 1st respondent must provide a personal hearing and issue a fresh order within two months, effectively setting aside the original tax order without imposing costs.

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Issues involved:
The petitioner challenges an order dated 30.08.2023, claiming lack of opportunity to contest the tax demand on merits.

Details of the judgment:
1. The petitioner received a show cause notice for the tax period 2018-2019 regarding alleged wrongful availing of Input Tax Credit (ITC). The petitioner replied with supporting documents, but the impugned order was issued without providing a reasonable opportunity for the petitioner to contest.

2. The petitioner, through counsel, argued that she was unaware of the impugned order as GST compliances were managed by her tax consultant. The order was only noticed upon receiving an attachment order related to her bank account.

3. The petitioner seeks another chance to present relevant documents and contest the tax claim on merits, agreeing to remit 20% of the disputed tax demand as a condition for remand.

4. The Government Advocate pointed out that three reminders for personal hearings were issued to the petitioner after her initial reply. However, the petitioner did not submit documents to establish the actual movement of goods.

5. Upon review, it was found that the petitioner had submitted various documents but lacked proof of actual movement of goods like e-way bills and weighment slips. The impugned order was set aside, and the petitioner was given a chance to produce additional documents to prove the movement of goods.

6. The matter was remanded for reconsideration with the condition of remitting 20% of the disputed tax demand within two weeks. The petitioner could submit additional documents to establish the movement of goods, and the 1st respondent was directed to provide a reasonable opportunity for a personal hearing and issue a fresh order within two months.

7. The writ petition was disposed of without costs, and connected miscellaneous petitions were closed as a consequence of setting aside the impugned order.

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