Rajesh Silk Emporium vs. The Deputy Assistant Commissioner

Held

The High Court held that the tax authority should not have proceeded with the assessment after being informed of the petitioner's accident. It set aside the impugned assessment order and remanded the matter for fresh consideration, directing the issuance of a new notice and an opportunity for hearing.

Facts

Rajesh Silk Emporium challenged an ex-parte GST assessment order and recovery action, arguing their deponent could not respond to notices or attend hearings due to an accident, which was communicated to the tax authorities. The 1st respondent proceeded with the assessment under Section 73 and recovered dues from the petitioner's bank under Section 79(1)(c).

Key Issues

The key issue was whether an ex-parte assessment order, passed despite the tax authority being aware of the taxpayer's genuine inability to participate in proceedings due to an accident, violated principles of natural justice.