Quashing of tax assessment remitted for fresh adjudication, subject to 50% pre-deposit and procedural compliance.

Quashing of a tax assessment order and remittal for fresh adjudication was conditioned on a 50% pre-deposit requirement, with amounts already recovered to be adjusted against that pre-deposit; if recovered sums satisfy 50% no further deposit is required. The assessee must file a reply to the Show Cause Notice in the prescribed form within the specified time, treating the impugned assessment order as an addendum to the notice. Bank attachment will be lifted subject to the 50% deposit and no other arrears outstanding; failure to comply permits revenue to resume recovery as if the petition were dismissed.

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Issues: Whether the impugned GST demand order dated 15.07.2024 can be quashed and the matter remitted for fresh adjudication subject to conditions including a pre-deposit and adjustment of amounts already recovered.

Analysis: The petition challenges the demand confirmed in Form GST DRC-07 following a Show Cause Notice in Form GST DRC-01 for the 2019-2020 tax period. The record shows partial recovery from the partner's bank account but the respondents could not confirm amounts. The Court applied the established approach of balancing revenue interest and assessee's rights by directing quashment of the impugned order and remitting the matter for fresh consideration on merits, conditioned on a specified pre-deposit from the petitioner, verification and adjustment of any amounts already recovered, filing of a reply to the show cause notice, and a time-bound final adjudication by the authority.

Conclusion: Impugned order quashed; matter remitted to the first Respondent for fresh adjudication on merits subject to the petitioner depositing 50% of the disputed tax (with adjustment of amounts already recovered) and filing a reply within thirty days, and the authority to decide the matter expeditiously in accordance with law.

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