2024 (11) TMI 869 - HC - GST

Challenge to impugned order and rectification order for assessment year 2018-19 - mismatch between GSTR-3B and GSTR-2A/GSTR-2B - impugned order is challenged on the premise that neither the show cause notices nor the impugned order of assessment dated 24.11.2023 has been served by tendering to the petitioner or by registered post, instead it was uploaded in the common portal - principles of natural justice - HELD THAT - The impugned order dated 24.11.2023 is set aside and the petitioner shall deposit 25% of the disputed tax i.e., as reduced by order of rectification dated 08.05.2024 within a period of four (4) weeks from the date of receipt of a copy of this order. On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. The writ petition stands disposed of.

Summary

Issues:
Challenge to impugned order and rectification order for assessment year 2018-19, discrepancies in tax filings, service of notices through common portal, alleged mismatch between GSTR-3B and GSTR-2A/GSTR-2B, opportunity for explanation, recent judgment reference, payment of disputed tax, lifting of bank attachment.

Analysis:

The petitioner, engaged in trading business, challenged the impugned order and rectification order related to the assessment year 2018-19 due to discrepancies in tax filings. Notices were issued to the petitioner regarding the discrepancies, followed by a reminder for a personal hearing, which the petitioner failed to respond to, leading to the passing of the impugned order. The petitioner later claimed that a rectification order was made to reduce tax liability, but their subsequent rectification petition was rejected, and recovery proceedings were initiated.

The challenge to the impugned order was based on the method of service, as the notices were uploaded on a common portal instead of being served physically to the petitioner. The petitioner argued that they were unable to access the portal, hindering their participation in the adjudication proceedings. The primary issue revolved around the alleged mismatch between GSTR-3B and GSTR-2A/GSTR-2B, with the petitioner seeking an opportunity to explain these discrepancies.

The petitioner sought reliance on a recent judgment of the court and expressed readiness to pay 25% of the disputed tax, requesting a final opportunity to present objections before the adjudicating authority. The petitioner also requested the lifting of a bank attachment, which the Government Advocate did not oppose. Consequently, the court set aside the impugned order and directed the petitioner to deposit 25% of the disputed tax within four weeks. Upon compliance, the impugned order would be treated as a show cause notice, allowing the petitioner to submit objections within four weeks. Failure to comply would result in the restoration of the impugned order, with the bank attachment to be lifted immediately.

In conclusion, the writ petition was disposed of with no costs, and connected miscellaneous petitions were closed, providing a detailed resolution to the issues raised by the petitioner regarding the assessment and rectification orders.