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 notice, allowing petitioner to submit objections within four weeks. Bank account attachment lifted. Petition disposed without costs, providing opportunity for tax credit dispute resolution.

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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.

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