Tax Challenge: Petitioner Gets Last Chance to Explain Case Merits with 25% Deposit, Fresh Order to Follow

HC granted petitioner one opportunity to explain case merits, requiring 25% tax deposit within 30 days. Impugned order quashed and treated as show cause notice addendum. Respondent directed to pass fresh order within three months after petitioner's compliance. Writ Petition disposed without costs.

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Issues involved:
Challenge to impugned order for Assessment Year 2020-2021 due to failure to reply in time.

Analysis:
The petitioner challenged the impugned order dated 12.05.2023 confirming the demand proposed in the notice in Form GST DRC-01, as the petitioner failed to file a timely reply. The petitioner sought an opportunity to explain the case on merits. The respondent argued that the Writ Petition lacked merits citing decisions of the Hon'ble Supreme Court. The Court considered arguments from both sides.

The Court, after considering submissions, decided to grant the petitioner one opportunity to explain the case on merits. The petitioner was required to deposit 25% of the disputed tax from the Electronic Cash Register within 30 days. The impugned order was quashed, to be treated as an Addendum to the show cause notice. The respondent was directed to pass fresh orders on merits within three months after the petitioner complies with the requirements and submits a reply within 30 days.

In conclusion, the Writ Petition was disposed of with the above observations, with no costs imposed. Connected Miscellaneous Petitions were closed as a result of this judgment.

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