Quashing of ex parte tax assessment and remand with graded pre-deposit requirement; bank attachment vacated upon compliance.

Quashing of an ex parte tax assessment order with remand for fresh adjudication; the remand is conditioned on graded pre-deposit obligations (ranging from 25% to 100% depending on delay) and, in the specific instance, a one-third pre-deposit requirement. Vacation of bank attachment is ordered conditional on the taxpayer complying with the stipulated pre-deposit and not being in arrears of other liabilities; any prior recoveries or payments shall be set off against the required pre-deposit. Failure to comply authorises recovery proceedings as if the petition were dismissed, and the matter is disposed of accordingly.

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Issues: Whether the impugned ex-parte order passed under Section 74 of the GST enactments for the tax period 2023-2024 should be quashed and the matter remitted to the assessing authority for fresh adjudication subject to a pre-deposit condition.

Analysis: The petitioner challenged an ex-parte order confirming tax, interest and penalty under Section 74. The Court noted prior consistent decisions in similar circumstances where orders were quashed and matters remitted for fresh consideration on terms requiring pre-deposit of a portion of disputed tax. The petitioner asserted voluntary payments towards the demanded amount and sought relief contingent on a specified pre-deposit. The respondent could not confirm the payments. The Court directed that on compliance with the stipulated pre-deposit the assessing authority shall re-do the adjudication on merits and that bank attachment shall be vacated subject to conditions; prior payments shall be set off for the pre-deposit; failure to comply would permit the authority to proceed as if the petition were dismissed in limine.

Conclusion: The impugned ex-parte order is quashed and the matter is remitted to the assessing authority to pass a fresh order on merits subject to the petitioner depositing one-third of Rs. 3,00,42,942/- in cash or from the petitioners Electronic Credit Ledger within thirty days; on such compliance the authority shall decide the matter preferably within three months and the bank attachment shall stand vacated; prior payments shall be set off for the pre-deposit; non-compliance permits the authority to proceed as if the petition were dismissed.

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