Tax Dispute Resolved: Petitioner Wins Challenge, Ordered to Deposit 10% While Respondent Reconsiders Demand Order

HC allowed writ petition challenging tax demand order. Court quashed original order and remanded case to respondent, directing petitioner to deposit 10% of disputed tax and file reply to notices within 30 days. Respondent ordered to pass fresh order on merits within 30 days after hearing petitioner, with all legal issues left open.

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Issues involved: Challenge to impugned order confirming demand, failure to reply to notices, remand for fresh order on merits.

In the present case, the petitioner challenged the impugned order dated 23.12.2023, where the fifth respondent confirmed a demand of Rs. 8,14,484/- inclusive of penalty and interest. The impugned order followed notices issued to the petitioner, which were not replied to. Consequently, the impugned order was quashed, and the case was remanded back to the fifth respondent for a fresh order on merits, subject to the petitioner depositing 10% of the disputed tax and filing a reply to the notices within 30 days. The fifth respondent was directed to pass a fresh order on merits within 30 days after hearing the petitioner, treating the impugned order as a corrigendum to the notices. All issues were left open to be raised before the fifth respondent.

The Writ Petition was allowed, with no costs imposed, and connected Miscellaneous Petitions were closed.

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