Tax Assessment Order Overturned: Procedural Flaws Expose Need for Fair Hearing and Proper Legal Consideration Under Section 143

HC found procedural irregularities in tax assessment order for 2018-2019. While petitioner failed to respond to notices, court identified respondent's lack of proper consideration in demand confirmation. HC set aside the original order, directing respondent to issue fresh order after petitioner deposits 10% of balance amount within 30 days, ensuring fair hearing and proper legal process.

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Issues:
Challenge to Order-in-Original for Assessment Year 2018-2019, Violation of principles of natural justice.

Analysis:
The petitioner challenged Order-in-Original No.06/GST/EPM/2024 dated 12.02.2024, which confirmed discrepancies in tax liability and excess input tax credit availed. The petitioner was issued a notice to explain the discrepancies, which were partially dropped earlier. Despite subsequent notices, the petitioner failed to respond, leading to the confirmation of the demand by the respondent. The petitioner alleged a violation of natural justice.

The Court noted the petitioner's failure to respond to the notices issued by the respondent, including the Show Cause Notice. However, it observed a lack of application of mind by the respondent in confirming the dropped amount without proper consideration. Consequently, the Court set aside the impugned order and remitted the case back to the respondent for a fresh decision, subject to the petitioner depositing 10% of the balance amount within 30 days.

The impugned order was directed to be treated as an addendum to the Show Cause Notice, and the petitioner was given 30 days to respond and deposit the required amount. If the petitioner complies, the respondent was instructed to pass a fresh order on merits and in accordance with the law. The Court disposed of the Writ Petition without costs, closing the connected Miscellaneous Petition.

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