2024 (6) TMI 830 - HC - GST

Trader Wins GST Challenge: Partial Tax Payment, Fresh Assessment Allowed with Fair Hearing Opportunity

Chettiar Stores Versus Deputy State Tax Officer - I, Chennai

HC quashed the GST assessment order against a trader whose registration was cancelled. The court directed the petitioner to pay 10% of disputed tax ... Validity of assessment order - cancellation of GST registration of petitioner - petitioner did not have access to the GST portal and was, in any event, not acquainted with the use of computer resources - HELD THAT:- The admitted position is that the petitioner's GST registration was cancelled. As a consequence, at a minimum, the petitioner had little reason to monitor the GST portal. The assessment order indicates clearly that the petitioner was not heard although it appears that personal hearings were offered to the petitioner. The petitioner also agreed to remit 10% of the disputed tax demand as a condition for remand. The petitioner should be provided an opportunity to contest the tax demand. Solely for this reason, the impugned assessment order is quashed subject to the condition that the petitioner remits 10% of the disputed tax demand within a period of two weeks from the date of receipt of a copy of this order - Petition disposed off. Issues:The issues involved in the judgment are the challenge to an assessment order dated 22.08.2023, cancellation of GST registration, lack of access to GST portal, absence of notice in Form ASMT-10, and the petitioner's request to remit 10% of the disputed tax demand for re-consideration.Cancellation of GST Registration:The petitioner, engaged in retail and wholesale trading of cereals, had her GST registration cancelled from 01.04.2020. The impugned assessment order was issued on 22.08.2023 following a show cause notice dated 06.07.2023. The petitioner claims she did not have access to the GST portal due to the registration cancellation.Absence of Notice and Lack of Access to GST Portal:The petitioner's counsel argued that the petitioner was not familiar with computer resources and did not receive a notice in Form ASMT-10 prior to the impugned proceedings. The petitioner agreed to pay 10% of the disputed tax demand for re-consideration.Contentions and Opportunities Provided:The Government Advocate pointed out that the petitioner had multiple opportunities as evidenced by the impugned order and subsequent notices post GST registration cancellation. Despite personal hearings being offered, the petitioner was not heard during the assessment process.Judgment and Relief Granted:The court quashed the assessment order, allowing the petitioner to contest the tax demand. The petitioner was directed to remit 10% of the disputed tax demand within two weeks and submit a reply to the show cause notice. Upon compliance, the assessing officer was instructed to provide a reasonable opportunity, including a personal hearing, and issue a fresh assessment order within two months. The case was disposed of with no costs incurred, and related motions were closed accordingly.