2024 (12) TMI 136 - HC - GST

Challenge to impugned order - service of notices - impugned order is challenged on the premise that neither the show cause notices nor the impugned order of assessment has been served by tendering to the petitioner or by registered post, instead it was uploaded in the common portal under the head Additional Notices and Orders tab - violation of principles of natural justice - HELD THAT - The petitioner is ready and willing to pay 10% of the disputed tax and that he may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which the learned Additional Government Pleader appearing for the respondent does not have any serious objection. The impugned order dated 29.08.2024 is set aside and the petitioner shall deposit 10% of the disputed tax within a period of four 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 weeks from the date of receipt of a copy of this order along with supporting documents/material. The petition is disposed off.

Summary

Issues:
Challenge to impugned order dated 29.08.2024 for assessment year 2019-2020. Proper service of show cause notices and assessment order. Opportunity for petitioner to explain defects. Compliance with recent judgment for remand. Deposit of 10% disputed tax for setting aside impugned order.

Analysis:
The petitioner, a partnership concern in the hospitality sector, filed a writ petition challenging an order related to the assessment year 2019-2020. The petitioner was found to have not declared the correct tax liability in the annual return of GSTR9 due to various defects, including under-declaration of net tax, excess claim of Input Tax Credit (ITC), invalid ITC, and interest on late payment of GSTR-3B. Despite multiple notices and opportunities for a personal hearing, the petitioner did not respond, leading to the confirmation of the proposal in the impugned order.

The challenge to the impugned order was based on the contention that the show cause notices and assessment order were not served in a manner that allowed the petitioner to participate effectively in the adjudication proceedings. The petitioner argued that the documents were uploaded on a common portal, rendering them unaware of the proceedings. Citing a recent judgment, the petitioner sought a similar remand with the condition of paying 10% of the disputed tax demand.

The court considered the submissions and set aside the impugned order dated 29.08.2024. The petitioner was directed to deposit 10% of the disputed tax within four weeks from the receipt of the order. Upon compliance, the impugned order would be treated as a show cause notice, allowing the petitioner to submit objections along with supporting documents within the same period. Failure to comply would result in the restoration of the impugned order. The court also ordered the lifting of the bank account attachment initiated as part of recovery proceedings upon payment of the required amount.

In conclusion, the writ petition was disposed of with the specified conditions, and no costs were awarded. The connected miscellaneous petitions were closed accordingly.