Tax Assessment Challenge Prevails: Partial Payment Required, Bank Attachment Lifted, Opportunity for Explanation Granted

HC allowed the petitioner's challenge to tax assessment order for 2018-19. Court directed petitioner to deposit 25% of disputed tax within 4 weeks and permitted submission of objections. Bank attachment was lifted. Impugned order set aside and treated as show cause notice, with opportunity to explain tax filing discrepancies. Writ petition disposed without costs.

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Issues:
Challenge to impugned order and rectification order for assessment year 2018-19, discrepancies in tax filings, service of notices through common portal, alleged mismatch between GSTR-3B and GSTR-2A/GSTR-2B, opportunity for explanation, recent judgment reference, payment of disputed tax, lifting of bank attachment.

Analysis:

The petitioner, engaged in trading business, challenged the impugned order and rectification order related to the assessment year 2018-19 due to discrepancies in tax filings. Notices were issued to the petitioner regarding the discrepancies, followed by a reminder for a personal hearing, which the petitioner failed to respond to, leading to the passing of the impugned order. The petitioner later claimed that a rectification order was made to reduce tax liability, but their subsequent rectification petition was rejected, and recovery proceedings were initiated.

The challenge to the impugned order was based on the method of service, as the notices were uploaded on a common portal instead of being served physically to the petitioner. The petitioner argued that they were unable to access the portal, hindering their participation in the adjudication proceedings. The primary issue revolved around the alleged mismatch between GSTR-3B and GSTR-2A/GSTR-2B, with the petitioner seeking an opportunity to explain these discrepancies.

The petitioner sought reliance on a recent judgment of the court and expressed readiness to pay 25% of the disputed tax, requesting a final opportunity to present objections before the adjudicating authority. The petitioner also requested the lifting of a bank attachment, which the Government Advocate did not oppose. Consequently, the court set aside the impugned order and directed the petitioner to deposit 25% of the disputed tax within four weeks. Upon compliance, the impugned order would be treated as a show cause notice, allowing the petitioner to submit objections within four weeks. Failure to comply would result in the restoration of the impugned order, with the bank attachment to be lifted immediately.

In conclusion, the writ petition was disposed of with no costs, and connected miscellaneous petitions were closed, providing a detailed resolution to the issues raised by the petitioner regarding the assessment and rectification orders.

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