2025 (10) TMI 1028 - HC - GST

GST order set aside; matter remitted for fresh adjudication for Apr 2020-Mar 2021 on 50% deposit condition

The HC quashed the impugned GST order and remitted the matter to the respondent to pass a fresh adjudication for the tax period Apr 2020-Mar 2021, subject ... Challenge to impugned Order which was preceded by a SCN in GST DRC-01 and the Petitioner was called upon to appear for personal hearing - HELD THAT:- It is noticed that under similar circumstances, this Court has come to the rescue of persons like the Petitioner by quashing the impugned Order on terms subject to the Petitioner depositing 25% of the disputed tax. There are no reason to take a different view in this case - However, considering the fact that the impugned Order dated 06.08.2024 was passed for the Tax Period between April, 2020 and March, 2021, in order to balance the interest of both parties viz., the Assessee and the Revenue, the case is remitted back to the Respondent to pass a fresh order subject to the Petitioner depositing 50% of the disputed tax in cash from the Petitioner's Electronic Cash Register within a period of thirty (30) days from the date of receipt of a copy of this order. It is stated by the learned counsel for the Petitioner that a sum of Rs. 5,77,575/- has already been recovered over a period of time. The submission of the learned counsel for the Petitioner appears to be reasonable. Therefore, the amount already recovered shall be adjusted towards deposit of 50% of the disputed tax as ordered above, subject to verification - Subject to the Petitioner complying with the above stipulated conditions, the Respondent shall proceed to pass a final order on merits and in accordance with law as expeditiously as possible, preferably, within a period of three (3) months thereafter. Petition disposed off. Petition challenged the 'impugned Order dated 06.08.2024' issued after a 'Show Cause Notice in GST DRC-01 dated 11.01.2024'. Petitioner received reminders and failed to file a reply or attend personal hearings; limitation for appeal under Section 107 expired. Court observed precedent and, to balance interests of assessee and revenue, remitted the matter to the Respondent to pass a fresh order subject to the petitioner depositing '50% of the disputed tax' in cash from the petitioner's Electronic Cash Register within thirty (30) days and contemporaneously filing a reply treating the impugned order as an addendum to the Show Cause Notice. A sum of Rs. 5,77,575/- already recovered shall be adjusted towards the 50% deposit, subject to verification. Respondent to decide on merits preferably within three months. If petitioner fails compliance, Respondent may recover tax 'as if this Writ Petition was dismissed in limine today.' Recovery obligation limited to the impugned order dated 06.08.2024. No costs.