2024 (12) TMI 872 - HC - GST

Assessment order set aside for GST return mismatches due to improper service and natural justice violations

Tvl. Surya Motors, Represented by its Partner, Mr. Mahaveer Purmia Versus The Assistant Commissioner (ST), Chennai

The HC set aside an assessment order dated 08.08.2024 for assessment year 2019-20 due to violations of natural justice principles. The case involved ... Challenge to impugned order passed by the respondent relating to the assessment year 2019-20 - Mismatch between GSTR-7, GSTR-3B and GSTR-1 - Mismatch between GSTR-8 and GSTR-1 - neither the show cause notices nor the impugned order of assessment has been served on the petitioner - violation of principle's of natural justice - HELD THAT:- The petitioner is ready and willing to pay 10% of the disputed tax and that they may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal. The impugned order dated 08.08.2024 is set aside and the petitioner shall deposit 10% of the disputed tax within a period of four weeks from the date of receipt of a copy of this order. On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four weeks from the date of receipt of a copy of this order along with supporting documents/material. Petition disposed off. Issues:Challenge to impugned order dated 08.08.2024 for assessment year 2019-20 due to discrepancies in GST returns. Lack of service of show cause notices and assessment order on the petitioner. Request for opportunity to explain discrepancies and reliance on a recent judgment for remand. Request for depositing 10% of disputed tax and lifting of bank attachment.Analysis:The petitioner, engaged in retailing two-wheeler automobiles and registered under the Goods and Services Tax Act, challenged the impugned order dated 08.08.2024 concerning discrepancies in GST returns for the assessment year 2019-20. Discrepancies included mismatches between GSTR-7, GSTR-3B, GSTR-1, and GSTR-8. The petitioner claimed that despite intimation and notices, they did not file returns or attend personal hearings, leading to the confirmation of the proposal in the impugned order.The petitioner contended that neither show cause notices nor the assessment order were served via proper channels, causing unawareness of the proceedings. They sought an opportunity to explain the discrepancies, citing a recent judgment for similar circumstances. The petitioner expressed readiness to pay 10% of the disputed tax and requested a final opportunity before the adjudicating authority to present objections, with a request to lift the bank attachment.The court set aside the impugned order and directed the petitioner to deposit 10% of the disputed tax within four weeks. Upon compliance, the assessment order would be treated as a show cause notice, and the petitioner could submit objections with supporting documents within four weeks. Failure to comply would result in the restoration of the assessment order. Recovery proceedings and bank attachments were to be lifted upon payment of 25% of disputed taxes within two weeks. The writ petition was disposed of with no costs, and connected miscellaneous petitions were closed.