GST assessment order set aside due to improper notice service, petitioner must pay 10% disputed tax for fresh hearing opportunity

The petitioner challenged an assessment order dated 30.12.2023 before HC alleging breach of natural justice, claiming unawareness of show cause notice uploaded only on GST portal without alternate communication. Despite respondent's contention that proper notices were issued and petitioner failed to respond, HC found merit in petitioner's claim of non-participation due to lack of notice. HC set aside the impugned order conditionally, directing petitioner to remit 10% disputed tax and submit reply within two weeks. Upon compliance, respondent must provide reasonable opportunity including personal hearing and issue fresh order within three months. Writ petition disposed of with no costs.

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Issues: Challenge to assessment order on grounds of breach of natural justice.

In this case, the petitioner challenged an assessment order dated 30.12.2023 on the basis of a breach of principles of natural justice. The petitioner argued that the show cause notice and impugned order were uploaded on the GST portal but were not communicated through any other mode. It was asserted that a tax consultant was engaged for GST compliances, and the show cause notice was not brought to the petitioner's notice. The petitioner's counsel highlighted a mismatch between the petitioner's GSTR-3B returns and GSTR-1 statement, along with discrepancies in the issuance of notices by different officers. The petitioner agreed to remit 10% of the disputed tax demand as a condition for remand.

The respondent, represented by the Additional Government Pleader, contended that the principles of natural justice were adhered to by issuing Form ASMT-10, show cause notice, and reminder notices. The impugned order confirmed the tax proposal due to the petitioner's non-response to the notices and failure to participate in personal hearings. However, since the petitioner claimed unawareness of the proceedings hindering their participation, the court deemed it necessary to provide an opportunity to the petitioner under certain conditions.

The court set aside the impugned order subject to the condition that the petitioner remits 10% of the disputed tax demand within two weeks and submits a reply to the show cause notice within the same period. Upon satisfaction of the remittance, the respondent was directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh order within three months from receiving the reply. The writ petition was disposed of with no order as to costs, and connected miscellaneous petitions were closed accordingly.

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