2024 (8) TMI 830 - HC - GST

Assessment Orders Overturned: Court Remits Cases for 2017-18, 2020-21 Due to Procedural Lapses; Fresh Orders Required.

The HC set aside the challenged Assessment Orders for the years 2017-2018 and 2020-2021 due to procedural lapses, remitting both cases back to the ... Challenge to assessment order - case of the petitioner is that the petitioner failed to respond to the Show Cause Notice dated 22.09.2023 for the Assessment Year 2017-2018 which culminated in the impugned Assessment Order dated 22.12.2023 - HELD THAT:- The petitioner may have a case to explain as far as the confirmation of demand vide Assessment Order dated 22.12.2023 for the Assessment Year 2017-2018 impugned in W.P.(MD) No.14443 of 2024 is concerned. Therefore, the impugned Assessment Order dated 22.12.2023 is set aside and the case is remitted back to the respondent subject to the petitioner paying 25% of the dispute tax from the Electronic Cash Ledger for the Assessment Year 2017-2018 and subject to the petitioner replying to the Show Cause Notice dated 22.09.2023 that preceded with the impugned Assessment Order dated 22.12.2023, within a period of 30 days from the date of receipt of a copy of this order. The impugned Assessment Order dated 07.09.2023 is also set aside and the case is remitted back to the respondent subject to the petitioner paying 25% of the dispute tax from the Electronic Cash Ledger for the Assessment Year 2020-2021, within a period of 30 days from the date of receipt of a copy of this order. Both the impugned Assessment Orders are quashed. Both the cases are remitted back to the respondent to pass fresh orders on merits. The impugned Assessment Orders shall be treated as Addendum to the Show Cause Notices issued to the petitioner for the respective Assessment Years. Petition disposed off. Issues:Challenged Assessment Orders for two different Assessment Years - 2017-2018 and 2020-2021.Analysis:1. Assessment Year 2017-2018:- The petitioner challenged the Assessment Order dated 22.12.2023, stating non-response to the Show Cause Notice.- The court set aside the Assessment Order, remitting the case back to the respondent.- Petitioner required to pay 25% of the disputed tax and reply to the Show Cause Notice within 30 days.2. Assessment Year 2020-2021:- Petitioner disputed the Assessment Order dated 07.09.2023, claiming no availing of input tax credit on a commercial vehicle.- Court found a nonapplication of mind and set aside the Assessment Order.- Similar to the first issue, the case was remitted back to the respondent, with the petitioner required to pay 25% of the disputed tax within 30 days.3. General Observations:- The court emphasized the need for the petitioner to comply with the directions within the specified timelines.- The impugned Assessment Orders for both years were quashed, and fresh orders on merits were directed to be passed by the respondent within two months.- Failure to comply would result in the dismissal of the Writ Petitions, allowing the respondent to proceed legally against the petitioner.4. Legal References:- The court referred to the importance of complying with the timelines based on relevant legal precedents, including decisions from the Hon'ble Supreme Court.- The court's decision was based on a thorough consideration of arguments presented by both parties, ensuring a fair and just outcome in the matter.5. Conclusion:- The Writ Petitions were disposed of without costs, with a clear directive for the respondent to reevaluate the cases and issue fresh orders based on merits within the specified timeline.- The petitioner's compliance with payment and response requirements was crucial for the successful resolution of the disputed Assessment Orders.