Mujahar Ali Sarkar vs. The State Of Assam And 3 Ors
Held
The Court held that since the respondent authorities admitted in their affidavit that the show cause notice dated 11.09.2024 and the demand order dated 22.10.2024 were issued inadvertently and that the process for rectification is underway, with the demand to be set to zero upon rectification, the respondents should be permitted to proceed with the rectification and recall the erroneous notices. The Court directed that this rectification process and recalling of notices be completed within 10 days from the date of the order. The writ petition was accordingly closed and disposed of. Any interim order, if in place, was to be vacated. The Court did not explicitly decide on the validity of the first show cause notice dated 29.06.2024, other than noting it remains valid and requires the petitioner to appear for a hearing.
Facts
The petitioner, Mujahar Ali Sarkar, challenged a summary of a show cause notice dated 11.09.2024 and an order in Form GST DRC-07 dated 22.10.2024, which imposed a demand of Rs. 44,63,076/- comprising tax, interest, and penalty. The petitioner was required to pay this amount by 22.11.2024. The respondents, represented by the State of Assam and tax authorities, filed an affidavit stating that the show cause notice and demand order were issued inadvertently and are under process for rectification. They further averred that once rectified, the demand would be set to zero, but a prior show cause notice dated 29.06.2024 remains valid, requiring the petitioner to appear for a hearing.
Key Issues
1. Whether the show cause notice dated 11.09.2024 and the demand order dated 22.10.2024, which imposed a demand of Rs. 44,63,076/-, were validly issued, considering the respondents' subsequent admission of inadvertent issuance and ongoing rectification process. Petitioner's contention: The petitioner argued that the demand notice and show cause notice were erroneous and sought their quashing. The petitioner relied on the respondents' subsequent admission in their affidavit that these notices were issued inadvertently and are being rectified. Respondents' contention: The respondents, through their affidavit, admitted that the show cause notice dated 11.09.2024 and the Demand Order dated 22.10.2024 were issued inadvertently and are under process to be rectified. They stated that once rectified, the demand would be set to zero. However, they maintained that the first show cause notice dated 29.06.2024 remains valid and requires the petitioner to appear for a hearing.
Sections Cited
GST DRC-07
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
2024
Heard Mr. D. Saraf, learned counsel for the petitioner. Also heard Mr. B. Gogoi, learned Standing Counsel for the Finance and Taxation Department. The writ petitioner before this Court has put to challenge the s
The judgment continues below.
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