Tax Assessment Order Overturned: Petitioner Granted Chance to Challenge Demand with 10% Remittance and Personal Hearing

HC set aside tax assessment order, granting petitioner opportunity to contest tax demand. Petitioner required to remit 10% of disputed tax within two weeks. Respondent directed to provide personal hearing and issue fresh order after reviewing petitioner's reply. Case disposed with procedural directions ensuring fair opportunity to present tax-related arguments.

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Issues:
1. Assessment order challenged for lack of reasonable opportunity to contest tax demand.
2. Allegation of unawareness of proceedings due to notices uploaded on GST portal.
3. Petitioner willing to remit 10% of disputed tax demand for remand.
4. Government Advocate argues sufficient opportunities were provided.
5. ITC reversal and tax proposal confirmation due to lack of reply to notice.
6. Setting aside impugned order with condition of remitting 10% of disputed tax demand.
7. Directions for petitioner to reply to show cause notice and respondent to issue fresh order.

Analysis:

1. The petitioner challenged the assessment order dated 02.06.2023, contending that a reasonable opportunity to contest the tax demand on merits was not provided. The proceedings against the petitioner began with a show cause notice dated 17.03.2022, leading to the impugned order dated 02.06.2023. The petitioner claimed unawareness of the proceedings as the notices and order were uploaded on the GST portal, specifically in the "view additional notices and orders" tab.

2. The petitioner, through learned counsel, expressed willingness to remit 10% of the disputed tax demand as a condition for remand. On the other hand, the Government Advocate argued that sufficient opportunities were indeed provided to the petitioner. He highlighted the issuance of a notice in Form GST ASMT-10, an intimation, and a show cause notice preceding the impugned order.

3. The impugned order revealed that Input Tax Credit (ITC) was reversed for violating Section 16(4) of the relevant GST enactments. Additionally, the tax proposal was confirmed due to the petitioner's failure to respond to the notice. However, the court deemed it appropriate to set aside the order, subject to the condition that the petitioner remits 10% of the disputed tax demand within two weeks. The petitioner was granted the opportunity to submit a reply to the show cause notice within the specified period.

4. Upon receiving the petitioner's reply and being satisfied with the remittance, the respondent was directed to provide a reasonable opportunity to the petitioner, including a personal hearing. Subsequently, the respondent was instructed to issue a fresh order within two months from the date of receiving the petitioner's reply. The court disposed of the case on these terms, with no costs incurred and related motions closed.

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