Tvl Hi Tech Traders vs. The Deputy State Tax Officer - 1

Facts

The petitioner, Tvl. Hi Tech Traders, challenged an assessment order dated 08.10.2024, issued by the Deputy State Tax Officer – I, which demanded a penalty of Rs. 20,67,616/-. The petitioner argued that this order was uploaded to the web portal but not communicated. Furthermore, the petitioner's GST registration had been cancelled on 23.08.2024, preventing them from accessing the web portal to view the order. The petitioner undertook to remit 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 dated 08.10.2024. The Court agreed with the views expressed by the Division Bench of the High Court of Allahabad in M/s. Katyal Industries Vs. State of UP and others. The impugned order was set aside and treated as a show cause notice. The petitioner was directed to file a reply to this show cause notice within 30 days of receiving a copy of the order. The respondent was permitted to issue a fresh order on merits expeditiously, preferably within three months thereafter, after hearing the petitioner. The Court also stipulated that if the petitioner failed to comply with these directions, the writ petition would be treated as dismissed in limine on the ground of laches. Upon payment of 20% of the disputed penalty as undertaken, the attachment on the petitioner's bank account would be lifted.

Key Issues

1. Whether the impugned assessment order, issued in FORM GST DRC-07 and bearing reference no: ZD331024049916F/2023-24, is liable to be quashed on the grounds of non-communication and the petitioner's inability to access it due to the cancellation of their GST registration. Petitioner's contentions: The petitioner argued that the order was not properly communicated as it was only uploaded to the web portal, and their registration cancellation prevented them from accessing it. They relied on the Allahabad High Court decisions in M/s. Ahs Steels Vs. The Commissioner of State Taxes and others and M/s. Katyal Industries Vs. State of UP and others. Revenue's contentions: The judgment records no specific arguments from the respondent.