2024 (10) TMI 436 - HC - GST

Tax Dispute Resolution: Writ Petition Succeeds with Conditional Order for Partial Deposit and Expedited Reconsideration of Original Assessment

HC allowed the writ petition challenging a tax demand, quashing the original order and remitting the case for fresh consideration. The petitioner must ... Quashing and remand of assessment order - Conditional relief by deposit of disputed tax from Electronic Cash Ledger - Treatment of impugned order as addendum to show cause notice - Opportunity to be heard and fresh adjudication on merits - Limitation and laches in invoking writ jurisdictionQuashing and remand of assessment order - Opportunity to be heard and fresh adjudication on merits - The impugned order dated 14.10.2023 was quashed and the matter remitted to the respondent for fresh adjudication on merits, subject to conditions. - HELD THAT: - The High Court, after noting the respondent's contention as to limitation and laches, exercised its discretion to grant relief by setting aside the impugned order and directing the respondent to pass a fresh order on merits. The Court afforded the petitioner an opportunity to ventilate grievances before the respondent and required the petitioner to file a consolidated reply within thirty days. The respondent was directed to hear the petitioner and pass a final order on merits and in accordance with law, preferably within three months from receipt of the reply. The Court made clear that failure by the petitioner to comply with the conditional directions would entitle the respondent to proceed as if the writ petition had been dismissed in limine.Impugned order quashed and matter remitted for fresh adjudication on merits on the terms stated.Conditional relief by deposit of disputed tax from Electronic Cash Ledger - Treatment of impugned order as addendum to show cause notice - Grant of interim/conditional relief by requiring deposit of 25% of disputed tax from Electronic Cash Ledger and treatment of the impugned order as an addendum to earlier show cause notices. - HELD THAT: - As a condition for permitting fresh adjudication, the Court directed the petitioner to deposit 25% of the disputed tax confirmed by the impugned order from the Electronic Cash Ledger within thirty days of receipt of the order's copy. The Court further directed that the quashed impugned order shall be treated as an Addendum to the Show Cause Notices in DRC 01A dated 06.04.2022 and DRC 01 dated 20.07.2023, thereby integrating the impugned findings into the earlier proceedings for reconsideration. The Court emphasized that the petitioner must be heard before the final order is passed and that non-compliance with the deposit or filing of reply permits the respondent to act as if the writ petition had been dismissed.Petitioner to deposit 25% from Electronic Cash Ledger and impugned order to be treated as addendum to the specified show cause notices for fresh consideration.Final Conclusion: Writ petition allowed: the impugned assessment order dated 14.10.2023 is quashed and the matter remitted for fresh adjudication on merits on the stated conditional terms; no costs. The petitioner challenged an order by the respondent confirming a tax demand for the assessment year 2017-18. The petitioner failed to take advantage of show cause notices issued before the impugned orders were passed. The High Court allowed the writ petition, quashed the impugned order, and remitted the case back to the respondent for a fresh order on merits. The petitioner must deposit 25% disputed tax within 30 days. The respondent must pass a final order within 3 months from the date of the petitioner's reply. If the petitioner fails to comply, the respondent can proceed against them.