High Court Quashes GST Recovery Notices, Orders Fresh Assessment with 10% Tax Deposit and Procedural Fairness

HC allowed writ petition challenging GST recovery notices due to procedural irregularities in notice placement. Court set aside original order, directing petitioner to deposit 10% of tax component and mandating respondent department to conduct fresh inquiry and issue new assessment order within eight weeks, ensuring principles of natural justice are followed.

---

---

Issues Involved:
The writ petition filed to quash the order dated 20.12.2023 and recovery notices dated 25.04.2024 and Form GST DRC-13 dated 06.05.2024 passed by the 1st respondent, alleging violation of natural justice principles.

Violation of Natural Justice Principles:
The petitioner's grievance was that the show cause notice was posted in the "View Additional Notices" tab instead of the "View Notices" tab, depriving them of the opportunity to effectively contest the proceedings. Citing the decision in Sabari Infra Pvt. Ltd. /vs/ Assistant Commissioner (ST), the Court held that the petitioner should be given a fair opportunity. Consequently, the Court allowed the writ petition, setting aside the order and recovery notices. The petitioner was directed to deposit 10% of the Tax Component as a precondition for a fresh hearing to object to the show cause notice. The respondent Department was instructed to conduct an enquiry and pass a fresh Assessment Order within eight weeks.

Decision and Directions:
The Court, following precedent, allowed the writ petition, setting aside the order and recovery notices. The petitioner was directed to deposit 10% of the Tax Component for a fresh hearing. The respondent Department was instructed to conduct an enquiry and pass a fresh Assessment Order within eight weeks. Consequently, connected miscellaneous petitions were closed with no costs incurred.

---