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

Held

The Court directed the respondent to consider the petitioner's rectification application dated 15.04.2025 on its merits. The respondent was instructed to pass appropriate orders in accordance with law, taking into account the records and explanations submitted by the petitioner, and also affording the petitioner a due opportunity. This decision was made without delving into the merits of the case, given the limited scope of the relief sought. The respondent was given a period of two months from the date of receiving a copy of the order to comply. In the interim, the respondent was directed to maintain the status quo prevailing as on the date of the order. The writ petition was allowed with these directions, and there was no order as to costs.

Facts

The petitioner, M/s. Akash Traders, filed a writ petition seeking a direction to the respondent, the Deputy State Tax Officer, to pass an order on merits in their rectification application dated 15.04.2025. The petitioner attributed their failure to participate in assessment proceedings to a part-time accountant's oversight, leading to an ex parte assessment order dated 22.02.2025. The rectification application was filed subsequently with supporting documents for the year 2020-2021. The respondent confirmed that a show cause notice (DRC-01) was issued on 23.11.2024, followed by reminders, and assured that the rectification application would be considered on merits.

Key Issues

1. Whether the respondent authority should be directed to consider the petitioner's rectification application on merits, considering the circumstances presented by the petitioner, including lack of knowledge about GST and reliance on an accountant leading to an ex parte assessment order? Petitioner's Contention: The petitioner argued that due to a lack of knowledge about GST and limited portal access, they relied on a part-time accountant who failed to inform them about assessment proceedings. This resulted in an ex parte assessment order dated 22.02.2025, as they could not participate. They subsequently filed a rectification application on 15.04.2025 with all relevant sales turnover documents for 2020-2021, which remains pending. Respondent's Contention: The respondent stated that the assessment order was passed after issuing a show cause notice (DRC-01) on 23.11.2024, followed by reminders on 20.01.2025 and 06.02.2025. They further submitted that the petitioner's rectification application would be considered on merits and appropriate orders passed in accordance with law within a time frame.