2024 (12) TMI 1071 - HC - GST

Tax Assessment Order Overturned: Medical Shop Owner Granted Opportunity to Challenge Disputed Tax and Resolve Credit Dispute

HC set aside tax assessment order for medical shop proprietor, directing deposit of 25% disputed tax within two weeks. Order to be treated as show cause ... Challenge to impugned order passed by the second respondent relating to the assessment year 2018-2019 - excess claim of input tax credit under reverse charge mechanism - impugned order is challenged on the premise that neither the show cause notice nor the impugned order of assessment has been served by tendering to the petitioner or by registered post, instead it was uploaded in the common portal - violation of principles of natural justice - HELD THAT:- The impugned order dated 16.03.2024 is set aside and the petitioner shall deposit 25% of the disputed tax within a period of two (2) 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 (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the second respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. Petition disposed off. Issues:Challenge to impugned order dated 16.03.2024 for assessment year 2018-2019.Analysis:The petitioner, a medical shop proprietor registered under Goods and Services Act, 2017, filed a writ petition challenging an order related to excess input tax credit claimed during the relevant period. The petitioner had received notices and reminders regarding the discrepancies in availed input tax credit but failed to respond or attend the personal hearing. The impugned order was challenged on the grounds of lack of proper service as it was uploaded on the common portal, hindering the petitioner's participation in the adjudication proceedings.The main issue was the excess input tax credit claimed by the petitioner, which the petitioner sought to explain if given an opportunity. Citing a recent judgment, the petitioner expressed willingness to pay 25% of the disputed tax and requested a final opportunity to present objections before the adjudicating authority. The court, considering the petitioner's submission, set aside the impugned order and directed the petitioner to deposit 25% of the disputed tax within two weeks. The impugned order would then be treated as a show cause notice, and the petitioner could submit objections within four weeks for further consideration.Regarding the attachment of the petitioner's bank account, the court ordered its lifting since the impugned order was set aside. Consequently, the writ petition was disposed of without costs, and the connected miscellaneous petition was closed.