Mr Gopal Ram vs. Commercial Tax Officer
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The petitioner, Mr. Gopal Ram, is challenging a Notice under Section 46 dated 24.08.2024 and an Ex-Parte Assessment Order dated 20.09.2024, along with related forms, issued by the Commercial Tax Officer (Respondent). The notice under Section 46 of the KGST Act directed the petitioner to file returns within 15 days. As the petitioner failed to comply within the stipulated period, the respondent proceeded to pass the assessment order and initiated recovery proceedings. The petitioner sought to quash these orders and direct the refund of Rs. 2,09,750/- recovered pursuant to the impugned order.
Held
The Court disposed of the petition by reserving liberty in favor of the petitioner to file returns and pay taxes within a period of four weeks from the date of the order. If the petitioner complies within this timeframe, the respondent is directed to consider the same and proceed further by taking an appropriate decision or passing orders in accordance with the law. The Court further directed that until the respondent takes such a decision and passes appropriate orders, no precipitative or coercive steps shall be taken against the petitioner. The Court did not expressly leave any issue undecided, but the ultimate validity of the assessment order is contingent on the petitioner's compliance.
Key Issues
1. Whether the Ex-Parte Assessment Order dated 20.09.2024, issued under Section 46 of the KGST Act, is liable to be quashed? The petitioner argued that if granted an opportunity, they would file the returns and pay the requisite taxes, requesting the respondent to consider this and refrain from coercive steps. The respondent contended that if the petitioner files returns and pays tax within a court-stipulated time, they would consider and pass appropriate orders. The core issue revolves around the validity of the ex-parte assessment in light of the petitioner's willingness to comply and the respondent's procedural actions.
Sections Cited
Section 46
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for the following reliefs: “i. Quash the Notice under Section 46 dated 24.08.2024 bearing Reference No.ZA2908241739312 issued by the Respondent (Annexure-A). ii. Quash the Ex-Parte Assessment Order dated 20.09.2024 together with Form GST ASMT – 13 and Summary of the Order dated 20.09.2024 all issued by the Respondent (Annexure-B ref No.29DTQPR7378JIZE, B1 Ref No.ZD290924047862U and B2 Ref No.ZD290924047862U. iii. Direct the Respondent to refund the amount of Rs.2,09,750/- recovered pursuant to the impugned order at Annexure-B Ref No.29DTQPR378J1ZE. iv. Pass such other or further order as this Hon’ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.”
A perusal of the material on record will indicate that on 24.08.2024, respondent issued a notice under Section 46 of KGST Act calling upon the petitioner to file returns within 15 days. Since the petitioner did not file the returns within the aforesaid period of NC: 2025:KHC:12103 15 days, respondent proceeded to pass the impugned assessment order dated 20.09.2024 following by initiating recovery proceedings against the petitioner, who is before this Court by way of the present petition.
Learned counsel for the petitioner submits that if an opportunity is provided to the petitioner, the petitioner would file his returns and pay requisite taxes, the respondent may be directed to consider the same and proceed further in accordance with law and by directing the respondent not to take precipitative/coercive steps till appropriate orders are passed by the respondent.
Per contra, learned AGA for the respondent submits that if the petitioner files his return and pays the tax within time stipulated by this Court, the respondent shall consider and pass appropriate orders in accordance with law.
In view of the aforesaid facts and circumstances of the case and submissions made by both sides, I deem it just and appropriate to dispose of this petition reserving liberty in favour of the petitioner to file returns and pay taxes within a period of four weeks from today. If the petitioner files return and pay taxes as stated supra within a period of four weeks from today, the NC: 2025:KHC:12103 respondent shall consider the same and proceed further and take appropriate decision/pass appropriate orders in accordance with law.
It is further directed that till the respondent takes appropriate decision and pass appropriate orders as stated supra, respondent shall not take any further precipitative/coercive steps against the petitioner. Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE
MDS List No.: 1 Sl No.: 21
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.