Tax Assessment Order Overturned: Petitioner Must Deposit 25% of Disputed Taxes; Compliance Within Four Weeks Required

The HC set aside the impugned order related to the petitioner's tax assessment for 2019-20, directing the petitioner to deposit 25% of disputed taxes within four weeks. Adjustments for any prior payments were allowed, with the balance due within specified timelines. The court mandated completion of verification and compliance within four weeks, warning that non-compliance would restore the impugned order. Recovery measures were to be lifted upon compliance, treating the impugned order as a show cause notice, with objections and supporting documents due within four weeks. No costs were awarded, and connected miscellaneous petitions were closed.

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The present case involves a Writ Petition challenging an order passed by the respondent related to the assessment year 2019-20 concerning a business engaged in Groceries, Provisions, and General Goods registered under the Goods and Services Act, 2017. The petitioner had filed its return and paid taxes but faced scrutiny due to discrepancies in GSTR 3B and GSTR 2A, as well as the non-generation of E-way bills for inward supplies. The respondent issued notices and reminders, leading to the impugned order based on the petitioner's reply lacking supporting materials. The petitioner sought an opportunity to explain the discrepancies, citing a recent judgment for support.The Court disposed of the petition based on the following terms:a) Setting aside the impugned orderb) Directing the petitioner to deposit 25% of the disputed taxes within four weeksc) Allowing for adjustments if any amount has been paid, with the balance to be paid within specified timelinesd) Mandating completion of verification and compliance within four weekse) Warning of restoration of the impugned order in case of non-compliancef) Requiring lifting of any recovery measures upon complianceg) Treating the impugned order as a show cause notice upon compliance, with the petitioner to submit objections and supporting documents within four weeksThe Court made it clear that failure to comply with the payment condition or filing objections within the specified period would result in the restoration of the impugned order. No costs were awarded, and connected miscellaneous petitions were closed.

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