M/S. Akash Traders vs. The Deputy State Tax Officer -2

Held

The Court, considering the limited scope of the relief sought by the petitioner and without delving into the merits of the case, directed the respondent to consider the petitioner's rectification application dated April 15, 2025, on its merits. The respondent was instructed to pass appropriate orders in accordance with the law, taking into account the records and explanations submitted by the petitioner, and to provide the petitioner with a due opportunity. This directive was to be completed within a period of two months from the date of receipt of a copy of the order. Pending this, the respondent was to maintain the status quo. The Court explicitly did not go into the merits of the assessment order itself.

Facts

The petitioner, M/s. Akash Traders, filed a writ petition challenging an ex parte assessment order dated August 17, 2024, for the assessment year 2019-20, passed by the Deputy State Tax Officer – 2. The petitioner contended that due to a lack of knowledge about GST and reliance on a part-time accountant, they were unaware of the assessment proceedings and thus could not participate, leading to the ex parte order. Subsequently, the petitioner filed a rectification application on April 15, 2025, with supporting documents, which remained pending. The petitioner sought quashing of the assessment order and a direction to consider their rectification application.

Key Issues

1. Whether the ex parte assessment order dated 17.08.2024, passed by the respondent for the assessment year 2019-20, is illegal, arbitrary, and without jurisdiction, warranting quashing? 2. Whether the respondent should be directed to consider the petitioner's rectification application dated 15.04.2025 on merits and pass a fresh assessment order after affording an opportunity? Petitioner's Arguments: The petitioner argued that the ex parte assessment order was passed due to their lack of knowledge of GST and reliance on an accountant who failed to inform them about the proceedings. They emphasized that their rectification application, filed with all relevant sales turnover documents for 2019-20, was pending and sought its consideration on merits. Respondent's Arguments: The respondent stated that the impugned assessment order was passed after issuing a show cause notice (DRC-01) on May 21, 2024, followed by personal hearing notices on June 29, July 9, and July 18, 2024. The respondent agreed to consider the petitioner's rectification application on merits and pass appropriate orders within a court-fixed timeframe.