M/S.Tvl.Smartschool Solutions Private Limited vs. The Deputy State Tax Officer-I/

Facts

The petitioner, M/s.TVL.Smartschool Solutions Private Limited, filed a writ petition challenging an order dated 28.11.2025, passed by the Deputy State Tax Officer-I. The impugned order was passed ex-parte because the petitioner failed to avail the opportunity to reply to a show cause notice and upload documents, as the notices were uploaded on the GSTN Common Portal. The petitioner contended that this failure was due to a lack of requisite knowledge and technical expertise to access the portal. The tax period in question is 2021-22, and the GSTIN is 33ASAPP7138C1Z1. The reference number for the order is ZD3311254996345.

Held

The Court held that an opportunity could be granted to the petitioner to present their submissions and produce relevant supporting documents before the respondent assessing officer, considering the nature of the discrepancies, the explanation provided by the assessee, and the reason given for not availing the opportunity. The Court noted that such opportunities are extended on equitable grounds, but under appropriate conditions. Therefore, an opportunity was granted to the petitioner on the condition of depositing 25% of the disputed tax amount. The impugned order dated 28.11.2025 was set aside, and the matter was remanded back to the respondent for fresh consideration. The petitioner was directed to appear before the respondent and submit their reply and documents. Any attachment of the bank account made pursuant to the impugned order was also ordered to be raised.

Key Issues

1. Whether the impugned order dated 28.11.2025, passed ex-parte by the Respondent, is liable to be quashed for violating the principles of natural justice, judicial discipline, and being arbitrary, perverse, and violative of Articles 14 and 19(1)(g) of the Constitution? Petitioner's Arguments: The petitioner argued that the ex-parte order was passed in gross violation of the principles of natural justice. They claimed that their failure to respond to the show cause notice was due to a lack of technical expertise and knowledge to access the GSTN Common Portal, and therefore, they should be granted another opportunity for a personal hearing. Respondent's Arguments: The respondent did not present any specific arguments in the judgment excerpt provided. However, the judgment notes that the petitioner did not avail the opportunity when the show cause notice was uploaded and the final order was passed.