2024 (7) TMI 367 - HC - GST

GST Assessment Orders Challenged: Writ Petitions Allowed with 10% Tax Deposit and Six-Month Reply Window

HC allowed writ petitions challenging GST assessment orders for years 2017-18 to 2021-22. Orders were set aside and remitted to respondent for fresh ... Quashing of ex parte assessment orders - service of notice on GST common portal - remand for fresh adjudication - conditional deposit pending reconsideration - order treated as addendum to show cause noticeService of notice on GST common portal - quashing of ex parte assessment orders - Impugned assessment orders were set aside on account of notices hosted on the GST common portal going unnoticed by the petitioner. - HELD THAT: - The Court found that the notices in Form GST DRC 01A and Form GST DRC 01 for the several assessment years were hosted on the GST common portal and went unnoticed by the petitioner, and that personal hearing notices referred to in the impugned orders also went unnoticed. On this basis the impugned orders, which were passed without the petitioner having replied, were held unsustainable and were set aside. [Paras 3, 6]Impugned orders set aside and quashed.Remand for fresh adjudication - conditional deposit pending reconsideration - order treated as addendum to show cause notice - Matter remitted to respondent for fresh decision on merits subject to filing of reply and deposit of a portion of the disputed tax; impugned orders to be treated as addenda to the show cause notices. - HELD THAT: - The Court remitted the case to the respondent to pass a fresh order on merits and in accordance with law within six months from receipt of the order, provided the petitioner files replies to the respective notices. The petitioner was directed to deposit 10% of the disputed amount as a condition for reconsideration, this direction being without prejudice to the petitioner's rights in the proceedings. The Court further directed that the quashed impugned orders shall be treated as addenda to the show cause notices and that the petitioner shall include in its reply the defences raised in these writ petitions. [Paras 6]Matter remitted for fresh adjudication within six months on petitioner filing reply and depositing 10% of disputed amount; impugned orders to be treated as addendum to show cause notices.Final Conclusion: Writ petitions allowed: impugned assessment orders for assessment years 2017-18 to 2021-22 quashed and matter remitted to the respondent for fresh adjudication within six months on conditions that the petitioner files replies to the notices and deposits 10% of the disputed amount; no costs. Issues involved:Challenge to impugned orders for assessment years 2017-18 to 2021-22, Notices issued in Form GST DRC - 01A and Form GST DRC -01, Failure to respond to notices, Petitioner's willingness to deposit 5% of disputed tax amount, Directions to ascertain service of annexures to impugned orders, Setting aside impugned orders, Remitting case back to respondent for fresh order, Timelines for fresh order, Requirement for petitioner to file a reply, Impugned orders treated as addendum to show cause notices, Allowing the Writ Petitions, No costs, Closure of connected Miscellaneous Petitions.Detailed Analysis:1. The petitioner challenged impugned orders dated 07.08.2023 for assessment years 2017-18 to 2021-22, following notices in Form GST DRC - 01A and Form GST DRC -01. The petitioner claimed the notices were unnoticed as they were on the GST common portal, leading to failure to respond and subsequent passing of impugned orders.2. The petitioner, willing to deposit 5% of disputed tax amount for each assessment year, sought relief. The learned Additional Government Pleader was tasked with confirming the service of annexures to the impugned orders on the petitioner.3. After considering submissions, the impugned orders were set aside, and the case was remitted to the respondent for a fresh order within 6 months. The petitioner must reply to notices and deposit 10% of the disputed amount without prejudice. Quashed impugned orders are to be treated as addendum to show cause notices, requiring the petitioner to file a reply with defenses from the writ petitions.4. The Writ Petitions were allowed with no costs, and connected Miscellaneous Petitions were closed. The judgment provided a comprehensive resolution to the issues raised, ensuring fairness and procedural compliance in the assessment proceedings.