9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (10) TMI 1610 - HC - GSTViolation of principles of natural justice - assessment order passed without affording an opportunity of personal hearing - prayer to remand the matter back to the first respondent on condition that the petitioner shall pay 10% of the disputed tax amount - HELD THAT - As far as this case is concerned, without providing an opportunity of personal hearing to the petitioner, the first respondent has passed the impugned assessment order. Therefore, this Court is of the opinion that the impugned assessment order passed by the first respondent is liable to be quashed and it is just to afford an opportunity of personal hearing to the petitioner to put forth his case. The Assessment Order bearing Ref.No.ZD330424197172H dated 25.04.2024 passed by the first respondent and the Communication dated 25.09.2024 addressed to the second respondent by the first respondent are quashed and the matter is remanded back to the first respondent for fresh consideration on condition that the petitioner shall pay 10% of the disputed tax amount to the first respondent, within a period of four weeks from the date of receipt of a copy of this order. After making such payment, the petitioner shall produce the payment proof before the first respondent - Petiiton disposed off by way of remand.
Issues:
1. Violation of principles of natural justice in passing the assessment order without affording an opportunity of personal hearing. 2. Freezing of the petitioner's bank account based on communication from the first respondent. 3. Request for quashing the assessment order and communication dated 25.09.2024. Analysis: Issue 1: Violation of principles of natural justice The petitioner, a retailer, received a Show Cause Notice under Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017, alleging discrepancies in returns filed. The petitioner clarified the errors in the reply but the first respondent passed the assessment order without granting a personal hearing. The court held that the assessment order was passed in violation of natural justice principles. The order was quashed, and the petitioner was granted an opportunity for a personal hearing. Issue 2: Freezing of the petitioner's bank account Subsequent to the assessment order, the first respondent sent a communication to the second respondent, resulting in the freezing of the petitioner's bank account. The court noted that the freezing of the account adversely impacted the petitioner's business activities. Consequently, the court ordered the lifting of the bank account freeze upon the petitioner producing proof of payment of 10% of the disputed tax amount. Issue 3: Request for quashing assessment order and communication The petitioner sought the quashing of the assessment order and the communication dated 25.09.2024. The court granted the relief by quashing both the assessment order and the communication. The matter was remanded back to the first respondent for fresh consideration, with the condition that the petitioner pays 10% of the disputed tax amount within four weeks. The petitioner was directed to file a reply within two weeks of making the payment, and the first respondent was instructed to consider the reply and pass appropriate orders after affording a personal hearing. In conclusion, the court quashed the assessment order and communication, directing a fresh consideration by the first respondent with specific conditions. The petitioner's bank account freeze was lifted upon compliance with the payment condition. The judgment aimed at upholding principles of natural justice and ensuring a fair process in tax assessment matters.
|
