Non-application of mind in tax assessment justified writ interference, with the demand order quashed and remanded for fresh consideration.

An assessment order confirming demand without considering the taxpayer's reply in Form GST DRC-06 and the written statement was held to reflect non-application of mind and a mechanical exercise of power, justifying interference under Article 226. The order was quashed, the taxpayer was allowed to file a fresh reply, and the matter was remitted for fresh decision on merits after affording a hearing. The direction freezing the bank account was also ordered to be lifted.

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Issues: Whether the impugned assessment order was liable to be quashed for having been passed without duly considering the petitioner's reply and written statement, and whether consequential reliefs were warranted.

Analysis: The order impugned before the Court confirmed the demand without adverting to the petitioner's reply in Form GST DRC-06 and the written statement referred to therein. The omission showed non-application of mind and rendered the order mechanical. In such circumstances, interference under Article 226 of the Constitution of India was justified. Since the impugned order was quashed, the matter was required to be considered afresh after permitting the petitioner to submit a fresh reply and after affording an opportunity of hearing.

Conclusion: The impugned order was quashed, the petitioner was permitted to file a fresh reply, the matter was remitted for fresh orders on merits, and the freezing of the petitioner's bank account was directed to be lifted.

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