2024 (2) TMI 715 - HC - GST

Breach of principles of natural justice - Petitioner was unaware of the notices and the impugned assessment orders until she received an oral intimation from the office of the respondent - reversal of Input Tax Credit (ITC) - HELD THAT - The documents on record disclose that the respondent issued both an intimation in Form GST DRC-01A and the show cause notice in Form GST DRC-01 and reminders before issuing the impugned assessment orders. Admittedly, these notices and assessment orders were uploaded on the 'View Additional Notices' tab in the GST portal. Earlier, such notices and orders were uploaded on the 'View Notices' tab. It was also brought to my notice that the GST authorities have redesigned the dashboard of the portal in January 2024 and clearly specified the type of notices and orders which may be viewed under the 'View Notices' tab and the 'View Additional Notices' tab. In the above circumstances, solely with a view to provide an opportunity to the assessee to contest the proceedings, the impugned orders call for interference, albeit by putting the petitioner on terms. The orders impugned herein are quashed subject to the condition that the petitioner remits sums equal to 7.5% of the disputed tax demand under each assessment order within a period of four weeks from the date of receipt of a copy of this order - Petition disposed off.

Summary

Issues Involved:
The issues involved in this case pertain to breach of principles of natural justice due to the petitioner's alleged unawareness of notices and assessment orders, the necessity for the petitioner to contest the reversal of Input Tax Credit (ITC), and the adequacy of appellate remedy in such circumstances.

Breach of Principles of Natural Justice:
The petitioner, a proprietrix of a business engaged in the supply of steel and construction materials, claimed unawareness of the notices and assessment orders until an oral intimation in December 2023. The petitioner argued that documents were posted in the 'View Additional Notices' tab on the GST portal, while previously they were on the 'View Notices' tab, leading to the petitioner's lack of knowledge about the proceedings. The petitioner's counsel emphasized the need to present relevant documents and cross-examine individuals relied upon by the assessing officer.

Response of the Respondent:
The Additional Government Pleader representing the respondent highlighted that the intimation, show cause notice, and impugned order were issued on specific dates in 2023. The respondent contended that as a registered person under the GST regime, the petitioner should have accessed the portal within the nine-month period, and should now avail of the statutory remedy. The documents on record indicated that notices and assessment orders were uploaded on the GST portal, with a subsequent redesign of the dashboard in January 2024 to clarify the types of notices and orders.

Judgment and Directions:
Considering the circumstances to provide the petitioner with an opportunity to contest the proceedings, the court decided to quash the impugned orders subject to a condition. The petitioner was directed to remit sums equal to 7.5% of the disputed tax demand under each assessment order within four weeks. Upon compliance, the assessing officer was instructed to reconsider the matter, ensuring a reasonable opportunity for the petitioner, including a personal hearing. Failure to meet the condition would allow the petitioner to initiate recovery proceedings as per the assessment orders. If the condition was fulfilled, fresh assessment orders were to be issued within four weeks. The writ petitions were disposed of with no costs, and connected miscellaneous petitions were closed.