GST Assessment Order Invalidated Due to Procedural Flaws, Petitioner Granted Fresh Opportunity to Present Evidence

HC of Madras quashed GST assessment order u/s ASMT-10 after finding procedural irregularities. Court determined that petitioner's reply was not adequately considered and remanded the matter for re-examination. The officer was directed to provide reasonable opportunity, allow document submission within two weeks, and issue a fresh assessment order within two months.

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Issues involved: Challenge to assessment order u/s GST ASMT-10, rejection of petitioner's reply, non-submission of required documents, sustainability of findings, incomplete reply, interference sought due to lack of consideration of petitioner's explanation.

Summary:

The High Court of Madras addressed a writ petition challenging an assessment order dated 29.12.2023 u/s GST ASMT-10. The petitioner had replied to a notice and provided documents through their Chartered Accountant, asserting that the expenses subject to TDS deduction did not form part of the revenue, supported by a reconciliation statement and sample invoices. Subsequently, a show cause notice was issued and responded to, leading to the impugned assessment order.

The petitioner contended that the findings in the impugned order, stating that the reconciliation statement was not enclosed, were unsustainable based on the Chartered Accountant's reply. The Government Advocate highlighted that the required documents were not submitted by the petitioner, justifying the impugned order.

The assessing officer rejected the petitioner's reply as incomplete, citing the absence of reconciliation statements despite the Chartered Accountant's reference to it. While acknowledging the petitioner's failure to provide all relevant invoices, the Court found the rejection of the reply unjustified as the explanation was not duly considered. Consequently, the impugned order was quashed, and the matter was remanded for re-consideration, allowing the petitioner to submit additional documents within two weeks to clarify the disparity in reported turnover.

The Court directed the assessing officer to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh assessment order within two months of receiving the petitioner's reply. The writ petition was disposed of with no costs, and related motions were closed accordingly.

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