2024 (4) TMI 278 - HC - GST

Validity of assessment order - absence of three-month gap between the SCN and order - Attachment of bank accounts of petitioner - reasonable opportunity of hearing was provided or not - HELD THAT - The impugned order reveals that the petitioner was provided opportunities by issuing notice in Form ASMT 10 and show cause notice in Form GST DRC-01. However, it is also clear that the petitioner did not participate in proceedings. In these circumstances, albeit by putting the petitioner on terms, the petitioner should be provided an opportunity of being heard. Solely for such reason, the impugned assessment order calls for interference. The impugned assessment order dated 18.10.2023 is quashed subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a maximum period of two weeks from the date of receipt of a copy of this order. Within the aforesaid period, the petitioner is also permitted to submit a reply to the show cause notice. Upon receipt thereof and upon being satisfied that 10% of the disputed tax demand was received, the assessing officer is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh assessment order within a period of two months from the date of receipt of the petitioner's reply. Petition disposed off.

Summary

Issues:
Challenge to assessment order and bank account attachment.

Analysis:
The petitioner, a registered person under GST enactments, claims unawareness of the assessment and attachment orders until the bank attachment was notified. The petitioner, conducting business on a small scale, had engaged a consultant for GST compliance who failed to keep the petitioner informed.

Legal Argument:
The petitioner argues u/s 73(2) of the TNGST Act for a three-month gap between show cause notice and assessment order. The petitioner offers to remit 10% of disputed tax demand for remand.

Government's Response:
The Government Advocate states that the petitioner had multiple opportunities to contest the tax demand starting with notice in Form ASMT 10.

Court's Decision:
The Court clarifies that u/s 73(2) of the TNGST Act, there is no requirement for a three-month interval between show cause notice and assessment order. The Court notes the petitioner's non-participation in proceedings but orders a fresh assessment providing an opportunity for the petitioner to be heard.

Judgment:
The assessment order dated 18.10.2023 is quashed with the condition that the petitioner remits 10% of disputed tax demand within two weeks. The petitioner can submit a reply to the show cause notice within this period. Upon satisfaction of the remittance, a fresh assessment order must be issued within two months. The bank attachment is to be lifted immediately. The writ petition is disposed of with no costs.