High Court Quashes GST Assessment Order for Procedural Flaws, Mandates Fair Hearing and Reconsideration of Case HC set aside an assessment order for GST-related violations due to procedural irregularities. The court found a breach of natural justice as the ...
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High Court Quashes GST Assessment Order for Procedural Flaws, Mandates Fair Hearing and Reconsideration of Case
HC set aside an assessment order for GST-related violations due to procedural irregularities. The court found a breach of natural justice as the petitioner's reply to a show cause notice was not considered, and no personal hearing was provided. The matter was remanded to the assessing officer with directions to reconsider the case, provide an opportunity for hearing, and issue a fresh assessment order within two months.
Issues involved: Challenge to assessment order u/s breach of natural justice, consideration of reply to show cause notice, regularization of delay in filing GSTR-3B returns, rejection u/s 16(4) of GST statutes.
Challenge to assessment order u/s breach of natural justice: The petitioner, a registered person under GST statutes, challenged an assessment order dated 04.01.2024 primarily on the ground of breach of principles of natural justice. Despite filing GSTR-1 returns on time, GSTR-3B returns were filed belatedly after paying late fees. After receiving intimation in Form GST DRC-01A and a show cause notice, the petitioner's reply was uploaded on the GST portal. However, the impugned order issued on 04.01.2024 did not consider the petitioner's reply or provide a personal hearing.
Consideration of reply to show cause notice: The learned counsel pointed out that the reply to the show cause notice was not taken into consideration in the impugned assessment order. The delay in filing GSTR-3B returns was regularized by paying late fees. The rejection u/s 16(4) of GST statutes, subject to litigation, was also highlighted. Request was made for providing the petitioner an opportunity of hearing.
Regularization of delay in filing GSTR-3B returns: The petitioner's reply dated 18.12.2023, with proof of uploading on 20.12.2023, was on record. However, the impugned order did not refer to or address the petitioner's reply. The petitioner was not granted a personal hearing. Consequently, the impugned order was quashed, and the matter was remanded to the assessing officer for re-consideration, with directions to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh assessment order within two months.
Rejection u/s 16(4) of GST statutes: The rejection under Section 16(4) of applicable GST statutes was a subject of litigation before the Supreme Court and the Division Bench of the Court. The petitioner sought an opportunity of hearing to justify the ITC claim. The impugned order was set aside to allow the petitioner to present relevant documents for reconsideration by the assessing officer within a specified timeframe.
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