2024 (10) TMI 1609 - HC - GST

Challenge to impugned orders, recovery notices and bank attachment notice - mismatch of GSTR-3B and GSTR-2A - HELD THAT - According to the petitioner, there was an error crept while filing the Form GSTR-3B. In this regard, a certificate was also obtained by the petitioner and the same was perused and accepted by the learned Government Advocate appearing for the respondent. In such case, this Court is of the view that as contended by the learned Government Advocate appearing for the respondent, it is just and necessary to provide an opportunity to the petitioner to establish their case before the respondent. In such view of the matter, this Court is inclined to set aside the impugned assessment orders. The four assessment orders dated 19.12.2023 came to be passed by the respondent pertaining to the Assessment Years 2017-18, 2018-19, 2019-20 and 2020-21 are set aside and the matters are remanded to the 1st respondent/The State Tax Officer for fresh consideration on condition that the petitioner shall pay 10% of disputed tax amount to the respondent, in each assessment order, within a period of four weeks from today (19.10.2024) and the setting aside of the impugned orders will take effect from the date of payment of the said amount - Petition disposed off by way of remand.

Summary

Issues:
Challenging assessment orders, rectification applications rejection, bill trading allegations, mismatch of GSTR-3B and GSTR-2A, error in filing GSTR-3B, remand for reconsideration, payment of disputed tax amount, setting aside assessment orders, fresh consideration, reply filing, personal hearing, recovery notices quashing, bank attachment notice release.

Analysis:
The writ petitions were filed to challenge four assessment orders, recovery notices, and a bank attachment notice issued by the respondent. The petitioner participated in the personal hearing and filed rectification applications after the assessment orders were passed for the Assessment Years 2017-18 to 2020-21. Allegations of bill trading and GSTR discrepancies were made against the petitioner, leading to the assessment orders. The respondent dropped proceedings related to bill trading after reviewing the petitioner's reply but continued based on GSTR discrepancies.

The petitioner argued that an error occurred while filing GSTR-3B, supported by a certificate now available. They offered to pay 10% of the disputed tax amount and requested an opportunity to prove their case. The Government Advocate for the respondent confirmed the certificate's validity and requested the matter to be remanded for reconsideration. The Court examined the submissions and materials on record, finding it necessary to allow the petitioner to establish their case.

Consequently, the Court set aside the assessment orders for fresh consideration by the State Tax Officer. The petitioner was directed to pay 10% of the disputed tax amount within four weeks, with the setting aside of orders effective upon payment. The petitioner must file a reply with necessary documents within three weeks of the order receipt. The respondent would then schedule a personal hearing, issue clear notices, and pass orders promptly after considering the petitioner's submissions.

As the assessment orders were annulled, the Court quashed the recovery notices and bank attachment notice. The respondent was instructed to release the bank account attachment upon proof of payment by the petitioner. The writ petition was disposed of without costs, and connected miscellaneous petitions were closed in line with the Court's directions.