2024 (7) TMI 366 - HC - GST

Tax Assessment Orders Quashed: Petitioner Directed to Deposit 10% of Disputed Tax and Respond to Show Cause Notice Within 30 Days

HC quashed impugned tax assessment orders under TNGST Act, 2017 for Assessment Years 2017-18 and 2018-19. The Court remitted the case back to the tax ... Quashing of assessment orders - remand for fresh adjudication - treating impugned orders as addendum to show cause notice - conditional interim relief by deposit of disputed tax - opportunity of hearing and filing of reply - electronic service on taxpayer's portal and notice visibilityQuashing of assessment orders - remand for fresh adjudication - treating impugned orders as addendum to show cause notice - Impugned assessment orders dated 17.10.2023 and 08.11.2023 quashed and remitted for fresh adjudication - HELD THAT: - The Court, recording the parties' submissions and the petitioner's explanation that notices and orders uploaded on the electronic portal were not noticed, set aside the impugned orders and directed that they shall be treated as addenda to the show cause notice dated 22.07.2023. The matter is remitted to the first respondent to pass fresh orders on merits and in accordance with law after hearing the petitioner. The remand is unconditional as to merits and calls for fresh consideration by the assessing authority, subject to the procedural directions given by the Court. [Paras 6]Impugned orders quashed and matter remitted to respondent for fresh orders; impugned orders to be treated as addendum to show cause notice dated 22.07.2023Conditional interim relief by deposit of disputed tax - opportunity of hearing and filing of reply - electronic cash register payment condition - Petitioner directed to deposit 10% of disputed tax and to file reply within 30 days; assessing officer to decide afresh preferably within three months - HELD THAT: - As a condition for remand and an opportunity to be heard, the Court recorded the petitioner's willingness to deposit 10% of the disputed tax and ordered payment through the electronic cash register. The petitioner must file a reply to the show cause notice within 30 days of receipt of the order. Thereafter the first respondent is directed to decide the matter on merits and in accordance with law, expeditiously and preferably within three months from receipt of the petitioner's reply. [Paras 7]Petitioner to deposit 10% of disputed tax through electronic cash register and file reply within 30 days; respondent to pass fresh orders on merits preferably within three monthsElectronic service on taxpayer's portal and notice visibility - laches and limitation raised by revenue - Contention of delay / latches raised by respondents not decided on merits and left open for the assessing authority - HELD THAT: - The respondents urged dismissal on account of delay and latches, noting expiry of the statutory period for filing an appeal. The Court did not adjudicate the limitation or laches contention but remitted the matter for fresh consideration by the assessing authority, thereby leaving any determination on limitation or procedural bar to be examined in the course of the fresh adjudication. [Paras 5, 6]Limitation/latches contention not decided; left open for determination by the assessing authority during fresh adjudicationFinal Conclusion: Writ petitions disposed of at admission by quashing the impugned assessment orders and remitting the matters for fresh adjudication; petitioner to deposit 10% of disputed tax and file reply within 30 days, and the assessing authority to decide the matters on merits and in accordance with law, preferably within three months; no costs. Issues:Challenging impugned orders under TNGST Act, 2017 for Assessment Years 2017-18 and 2018-19.Analysis:The petitioner contested impugned orders dated 17.10.2023 and 08.11.2023 under Section 73 of TNGST Act, 2017, confirming demands for IGST, CGST, and SGST reversals along with interest for the relevant period. The petitioner claimed ignorance of the orders and notices uploaded on the web portal due to being a small operator not regularly checking the portal.The petitioner's counsel argued for an opportunity before the State Tax Officer, Nagercoil-1 Assessment Circle, citing the petitioner's business nature of selling computers and infrequent web portal monitoring. Conversely, the Additional Government Pleader maintained that the delay in filing the Writ Petitions rendered them meritless, as the statutory appeal period had expired under Section 107 of TNGST Act, 2017.After considering both sides, the Court decided to remit the case back to the respondent for fresh orders on merits. The impugned orders were quashed, to be treated as addendum to the show cause notices issued earlier. The petitioner was directed to deposit 10% of the disputed tax electronically and respond to the show cause notice within 30 days. The first respondent was instructed to issue fresh orders promptly, preferably within three months, after hearing the petitioner.In conclusion, the Writ Petitions were disposed of with the mentioned directions, without imposing any costs. The connected miscellaneous petitions were closed accordingly.