Tvl Hi Tech Traders vs. The Deputy State Tax Officer - 1
Facts
The petitioner, Tvl.Hi Tech Traders, challenged an assessment order dated 09.09.2024, issued by the Deputy State Tax Officer – I, demanding a penalty of Rs. 7,32,064/-. The petitioner argued that the order was uploaded to the web portal but not communicated, and their GST registration had been cancelled on 23.08.2024, preventing them from accessing the portal. The petitioner undertook to deposit 20% of the disputed penalty within eight weeks. The petitioner also referred to decisions from the Allahabad High Court.
Held
The Court quashed the impugned assessment order. It reasoned that the order was not properly communicated to the petitioner, especially considering their GST registration had been cancelled, preventing them from accessing the web portal. The Court relied on the principles laid down by the Allahabad High Court in similar cases. The impugned order was treated as a show cause notice. The petitioner was directed to file a reply within 30 days of receiving a copy of the order. The respondent was permitted to issue a fresh order on merits within three months thereafter, after hearing the petitioner. The Court also stipulated that if the petitioner failed to comply, the writ petition would be treated as dismissed for laches. Upon payment of 20% of the disputed penalty, the attachment on the petitioner's bank account would be lifted.
Key Issues
1. Whether the impugned assessment order, issued after the cancellation of the petitioner's GST registration and uploaded only to the web portal without proper communication, is valid. The petitioner contended that the order is bad in law as it was not properly served and they had no opportunity to respond due to the cancellation of their registration. The respondent did not record any specific arguments in the judgment. The court considered the procedural fairness in issuing such an order. The issue hinges on the proper procedure for communication of orders under GST law, particularly when a taxpayer's registration is cancelled.
Sections Cited
FORM GST DRC-07
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Before: and
Heard both sides. 2.The petitioner challenges the impugned assessment order dated 09.09.
The judgment continues below.
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