2024 (10) TMI 1425 - HC - GST

Tax Assessment Overturned: Procedural Flaws Invalidate Order, Petitioner Must Deposit 10% and Respond Within Specified Timeframe

The HC quashed tax assessment orders due to procedural irregularities, specifically lack of adequate notice and personal hearing. The court remanded the ... Challenge to assessment orders - alleged discrepancies in the returns filed by the petitioner - petitioner was not provided sufficient time to respond to the show cause notices and that no personal hearing was offered - violation of principles of natural justice - HELD THAT:- The documents on record clearly indicate that the show cause notice was issued on 20.09.2023 and the impugned assessment orders on 28.09.2023. The time provided to the petitioner appears to be inadequate. In addition, the summary of the show cause notice does not provide an opportunity of personal hearing to the petitioner, which is not in consonance with the statutory mandate. Nevertheless, it also appears that the petitioner did not respond either to the notice in Form GST ASMT-10 or the intimation preceding the show cause notices. In those circumstances, the remand should be subject to terms. The assessment orders impugned herein are quashed and these matters are remanded for reconsideration subject to the petitioner remitting 10% of the disputed tax demand in respect of each assessment year as agreed to - Petition disposed off by way of remand. The petitioner challenged assessment orders for the years 2020-2021 and 2021-2022. The court found that the petitioner was not given adequate time to respond to show cause notices and no personal hearing was provided. The assessment orders were quashed, and the case was remanded with the condition that the petitioner remit 10% of the disputed tax demand for each year and submit a reply within two weeks. The assessing officer must then provide a reasonable opportunity for a personal hearing and issue fresh assessment orders within two months.