Tax Assessment Voided: Procedural Flaws Invalidate GST Notice, Petitioner Granted Hearing After Depositing Partial Disputed Amount

HC quashed the assessment order against a GST-registered entity due to procedural irregularities in notice service. Despite registration cancellation, the court granted the petitioner an opportunity to contest the tax demand by remitting 10% of the disputed amount. The respondent was directed to provide a fair hearing and issue a fresh order within two months.

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Issues involved:
Challenge to assessment order based on breach of principles of natural justice and non-service of notices.

Summary:
The petitioner, a registered person under GST enactments until registration cancellation, challenges an assessment order dated 25.12.2023 for lack of natural justice principles. The impugned order and preceding notices were uploaded on the GST portal but not served through any other mode. Petitioner argues non-monitoring of portal post-cancellation and absence of current business operations. Notified reply deadline in reminder-1 precedes impugned order issuance.

The Government Advocate states that the show cause notice was served via e-mail, noting petitioner's portal access. Despite registration cancellation, petitioner's portal activity is acknowledged. Petitioner furnishes proof of registration cancellation and portal access on 20.12.2023.

Upon agreement to remit 10% of disputed tax demand, petitioner is granted the opportunity to contest the tax demand with specified conditions. The impugned order is quashed subject to the mentioned conditions, allowing petitioner to reply to the show cause notice within the stipulated period. Respondent is directed to provide a reasonable opportunity for the petitioner, including a personal hearing, and issue a fresh order within two months from the petitioner's reply receipt.

The Writ Petition is disposed of with no costs, and related Writ Miscellaneous Petitions are closed accordingly.

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