2025 (9) TMI 1207 - HC - GST

Ex parte tax order on royalty charges quashed for breach of natural justice; matter remitted for fresh adjudication

The HC quashed the ex parte impugned order assessing tax on royalty charges, holding that principles of natural justice were breached because the ... Levy of tax on royalty charges remitted with interest and penalty - ex-parte order - principles of natural justice - HELD THAT:- Since the learned Additional Government Pleader does not have instruction, it is deemed fit and appropriate to quash the impugned order and remand the matter to the file of the first respondent for fresh adjudication. Petition allowed by way of remand. Petitioner, a quarry operator, concedes liability to pay tax on royalty charges but challenges an ex parte assessment order that additionally levied interest and penalty for assessment year 2020-2021. Reliance is placed on the Supreme Court decision (2024) which directed conditionalities including: 'a. While the States may levy or renew demands of tax... the demand of tax shall not operate on transactions made prior to 1 April 2005; b. The time for payment of the demand of tax shall be staggered in instalments over a period of twelve years commencing from 1 April 2026; c. The levy of interest and penalty on demands made for the period before 25 July 2024 shall stand waived for all the assesses.' Prima facie the petitioner's case attracts clauses (b) and (c). As respondent lacked instruction, the impugned order is quashed and the matter remanded for fresh adjudication in accordance with the law laid down by the Supreme Court. Petition allowed; no costs; connected petitions closed.