M/S. Arcene Supply Services LLP vs. State Of Karnataka

Held

The High Court quashed both the appellate order and the original assessment order. It restored the proceedings to the Deputy Commissioner, directing the petitioner to submit documents to show cause, which the authority must consider before passing a fresh reasoned order.

Facts

The petitioner challenged an assessment order under Section 73 passed without a personal hearing, and an appellate order rejecting its appeal on grounds of limitation. The petitioner had filed a belated reply/rectification request and faced recovery proceedings, including the freezing of its bank account.

Key Issues

Whether the assessment order was valid despite the lack of a personal hearing and the petitioner's belated response. Whether the appeal was rightly rejected on limitation given the petitioner's expectation of rectification and the coercive recovery measures.