Tax Assessment Order Overturned: 10% Disputed Tax Payment Required, Fresh Hearing Mandated for Comprehensive Reconsideration

HC set aside tax assessment order and bank attachment notice, remanding the case for reconsideration. Petitioner directed to pay 10% of disputed tax and submit reply to show cause notice within two weeks. Assessing officer instructed to provide reasonable opportunity for hearing and issue fresh order within two months, with bank attachment lifted.

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Issues involved: Challenge to assessment order and bank attachment notice on grounds of lack of reasonable opportunity to contest tax demand.

Assessment Order Challenge:
The petitioner contended that they were unaware of the assessment proceedings and orders due to notifications being uploaded on the GST portal without their knowledge. It was argued that this lack of awareness deprived them of the opportunity to contest the tax demand on merits. The petitioner expressed willingness to remit 10% of the disputed tax demand as a condition for reconsideration.

Response of Government Advocate:
The Government Advocate representing respondents 1 & 2 argued that the petitioner had been provided with sufficient opportunity to contest the tax demand through the issuance of an intimation and a show cause notice. However, it was noted that the tax liability was imposed without the petitioner being heard, based on a mismatch between GSTR 1 and GSTR 3B. In light of this, it was deemed just and appropriate to afford the petitioner a reasonable opportunity to contest the tax demand.

Judgment and Remand:
The High Court set aside the assessment order and the bank attachment notice, remanding the matter for reconsideration. The petitioner was directed to remit 10% of the disputed tax demand within two weeks and submit a reply to the show cause notice within the same period. Upon receipt of the reply and confirmation of the remittance, the assessing officer was instructed to provide the petitioner with a reasonable opportunity, including a personal hearing, and issue a fresh order within two months. The bank attachment was lifted due to the assessment order being set aside. The writ petitions were disposed of without costs, and connected miscellaneous petitions were closed.

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