Oil Products Dealer Wins Partial Relief: GST Assessment Order Quashed with Conditional Remand and 10% Tax Payment Mandate

The HC quashed the GST assessment order against the oil products dealer, conditionally remanding the case. The court mandated the petitioner pay 10% of the disputed tax demand, submit a reply within two weeks, and allowed the assessing officer to issue a fresh order after providing a personal hearing, ensuring procedural fairness in tax assessment.

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Issues involved:
The assessment order challenged based on consideration of petitioner's reply. Discrepancy between GSTR 3B and GSTR 1 returns. Application of circular No.183 during the assessment period. Non-receipt of petitioner's reply by the respondent.

Assessment Order Challenge:
The petitioner, a dealer in oil products registered under GST, contested an assessment order citing a disparity between GSTR 3B and supplier's GSTR 1 returns. The petitioner clarified that the supplier's error in reporting b2c turnover caused the disparity, rectified in the annual return. The petitioner's physical reply dated 13.09.2023 was referenced, supported by an acknowledgment. The petitioner argued that circular No.183's procedure should have been followed, and proceedings against the supplier under Section 42(3) should have been initiated.

Non-receipt of Reply:
The respondent claimed non-receipt of the petitioner's reply dated 13.09.2023 and disputed the validity of the acknowledgment provided. Despite this, the content of the reply explained the disparity in returns due to the supplier's error. The court noted the petitioner's negligence in not uploading the reply on the portal and not engaging in the assessment proceedings.

Judgment and Remand:
The court, considering the interest of justice, quashed the impugned order on the condition that the petitioner remits 10% of the disputed tax demand within two weeks. The petitioner was allowed to submit a reply within the same period. Upon compliance, the assessing officer was directed to provide a reasonable opportunity for the petitioner to contest the tax demand, including a personal hearing, and issue a fresh assessment order within two months. The case was disposed of accordingly, with no costs incurred.

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