Tvl Hi Tech Traders vs. The State Tax Officer (Roving Squad 5)

Facts

The petitioner, Tvl.Hi Tech Traders, represented by its proprietor, challenged an assessment order dated 05.03.2025, issued by the State Tax Officer (Roving Squad 5). This order demanded a penalty of Rs. 1,74,29,916/-. The petitioner argued that the order was only uploaded to the web portal and not communicated, and their GST registration had been cancelled on 23.08.2024, preventing them from accessing the portal. The petitioner undertook to remit 20% of the disputed penalty within eight weeks. The court also noted decisions from the Allahabad High Court in similar matters.

Held

The Court held that the impugned assessment order dated 05.03.2025 should be set aside. The reasoning was based on the principle that orders must be properly communicated to the assessee. 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 treated as a show cause notice, and 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 after hearing the petitioner, preferably within three months thereafter. The Court also stipulated that if the petitioner failed to comply, the respondent could proceed as if the writ petition was dismissed for 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 assessment order dated 05.03.2025, issued in FORM GST DRC-07, is liable to be quashed on the grounds of non-communication and cancellation of GST registration prior to its issuance. Petitioner's contentions: The petitioner argued that the impugned assessment order was not properly communicated as it was only uploaded to the web portal, and their GST registration was cancelled prior to this upload, preventing them from accessing it. They relied on decisions from the High Court of Allahabad in M/s.Ahs Steels Vs the Commissioner of State Taxes and others and M/s.Katyal Industries Vs. State of UP and others. Respondent's contentions: The judgment does not record any specific arguments made by the respondent.