M/S. Alr Labs Private Limited vs. The Assistant Commissioner (St)

Facts

M/s. ALR Labs Private Limited (Petitioner) filed a writ petition challenging an ex-parte assessment order dated August 22, 2024, passed by the Assistant Commissioner (ST) under Section 73 of the GST Acts, 2017, for the Financial Year 2019-20. The Petitioner contended that the order lacked an electronically generated DIN, was not signed, and was passed without physically serving a show cause notice, thus violating principles of natural justice. The Petitioner also challenged a garnishee notice dated January 16, 2025, issued to HDFC Bank for recovery of Rs. 1,18,69,660/-, which exceeded the tax and penalty amount of Rs. 81,82,508/- stated in the assessment order. The Petitioner had filed a statutory appeal and deposited 10 percent of the disputed tax, claiming a deemed stay on the balance amount. The Petitioner sought to set aside both the assessment order and the garnishee notice.

Held

The Court noted that the learned counsel for the petitioner had filed a letter dated February 17, 2025, seeking permission to withdraw the Writ Petition with liberty to file afresh. In view of this letter, the Court listed the matter under the caption "for withdrawal". The Court granted the permission as sought by the petitioner. Consequently, the Writ Petition was dismissed as withdrawn with the liberty prayed for. No costs were awarded. Any pending miscellaneous petitions were also to stand closed as a sequel to the dismissal of the main petition.

Key Issues

1. Whether the ex-parte assessment order dated August 22, 2024, passed by the First Respondent under Section 73 of the GST Acts, 2017, for the Financial Year 2019-20, is arbitrary, invalid, violative of natural justice, and non-est in the eyes of law due to the absence of an electronically generated DIN, lack of signature, and failure to physically serve a show cause notice. 2. Whether the action of the First Respondent in initiating coercive steps by issuing a garnishee notice dated January 16, 2025, to the Fifth Respondent Bank for recovery of Rs. 1,18,69,660/-, when the disputed amount was Rs. 81,82,508/-, and without withdrawing it after the Petitioner filed a statutory appeal and deposited 10 percent of the disputed tax, is arbitrary, without authority, and contrary to law. Petitioner's contentions: The assessment order is bad in law for not having a DIN, not being signed, and not being served properly, thus violating natural justice. The garnishee notice is illegal as it seeks to recover an amount higher than what is due and was issued despite a statutory appeal being filed and a partial deposit made, implying a stay on further recovery. Revenue's contentions: Not recorded in the judgment.