Tax Assessment Challenged: Authority Ordered to Reconsider Case After Procedural Flaws, Petitioner Required to Deposit Partial Tax Amount

HC allowed the writ petition challenging tax assessment, directing the tax authority to provide a fresh hearing. The petitioner was ordered to deposit 10% of disputed tax within 30 days. The original order was quashed and remitted back for reconsideration, with instructions to pass a new order within three months. No costs were imposed.

---

---

Issues:
Challenge to impugned order and Notification No.09/2023 - Central Tax under CGST Act, 2017.

Analysis:
The petitioner challenged the impugned order dated 05.03.2024 by the fourth respondent and Notification No.09/2023 - Central Tax dated 31.03.2023 under Section 168A of the CGST Act, 2017. During the hearing, the petitioner decided to withdraw the challenge to the notification. The petitioner received notices in various forms followed by personal hearing notices. The petitioner claimed unawareness of the impugned order due to notices being hosted in the GST Common Portal. The petitioner sought an opportunity to explain discrepancies in turnover reported in Form GSTR 2A and taxable turnover declared in Form GSTR 3B, particularly related to setting up a Super Market. The petitioner also highlighted that not the entire turnover in Form GSTR 2A pertained to them, with a portion being non-taxable. The petitioner requested an opportunity to clarify these discrepancies.

The Additional Government Pleader for respondents 2 and 4 contended that the Writ Petition lacked merit and should be dismissed, suggesting the petitioner had an alternate remedy through an Appeal before the Appellate Authority. After considering the arguments, the Court decided to remit the case back to the fourth respondent for a fresh order. The petitioner was instructed to deposit 10% of the disputed tax from their Electronic Cash Register within 30 days. The impugned order was quashed, to be treated as an Addendum to the show cause notice. The fourth respondent was directed to pass fresh orders within three months after the petitioner's compliance with the deposit requirement.

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

---