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). The impugned order demanded a penalty of Rs. 1,14,19,366/-. The petitioner contended that the order was only uploaded to the web portal and not communicated. Furthermore, the petitioner's GST registration had been cancelled on 23.08.2024, preventing them from accessing the web portal. The petitioner undertook to remit 20% of the disputed penalty within eight weeks of receiving a copy of the order. The petitioner also referred to decisions from the Allahabad High Court.

Held

The Court quashed the impugned assessment order dated 05.03.2025. The Court agreed with the views expressed by the Division Bench of the Allahabad High Court in M/s. Katyal Industries Vs. State of UP and others, implying that the procedural infirmities raised by the petitioner warranted setting aside the order. The Court directed the petitioner to file a reply to the show cause notice within 30 days of receiving a copy of the order. The impugned order was to be treated as a show cause notice. The respondent was permitted to issue a fresh order on merits expeditiously, preferably within three months thereafter, after hearing the petitioner. The Court clarified that failure by the petitioner to comply with these stipulations would allow the respondent to proceed as if the writ petition was 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. No issue was expressly left undecided.

Key Issues

1. Whether the impugned 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 upload. Petitioner's Arguments: The petitioner argued that the assessment order was not properly communicated as it was only uploaded to the web portal. Crucially, their GST registration was cancelled on 23.08.2024, meaning they had no means to access the portal to view or respond to the order. They relied on decisions from the Allahabad High Court 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 Arguments: The judgment does not record any specific arguments made by the respondent.