M/S.New Sky Fireworks Industries vs. The State Tax Officer - 1

Held

The Court, considering the limited scope of the relief sought and without delving into the merits of the case, directed the respondent to consider the petitioner's rectification application dated 28.02.2025 on its merits. The respondent is to pass appropriate orders in accordance with the law, after considering the records and explanations submitted by the petitioner, and also granting the petitioner due opportunity. This decision is to be completed within a period of two months from the date of receipt of a copy of the order. In the interim, the respondent is directed to maintain the status quo prevailing as on the date of the order. The writ petition is allowed with these directions, and there shall be no order as to costs.

Facts

The petitioner, M/s. New Sky Fireworks Industries, filed a writ petition seeking a direction to the respondent, The State Tax Officer – 1, to pass an order on merits regarding their Rectification Application (ARN AD3302250952836) dated 28.02.2025. The petitioner explained 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 of assessment proceedings. This resulted in an ex parte assessment order dated 23.01.2025. The petitioner subsequently filed the rectification application, attaching documents related to their sales turnover for 2023-2024, which remained pending. The respondent acknowledged that the assessment order was preceded by a show cause notice (DRC 01) and personal hearing notices, and assured that the rectification application would be considered on merits.

Key Issues

1. Whether the respondent should be directed to pass an order on merits in the petitioner's Rectification Application (ARN AD3302250952836) dated 28.02.2025, considering the records and explanations filed by the petitioner, within a stipulated time frame. Petitioner's Argument: The petitioner contended that an ex parte assessment order was passed due to their reliance on a part-time accountant and lack of knowledge of GST procedures, leading to their inability to participate in adjudication proceedings. They have since filed a rectification application with supporting documents and seek its disposal on merits. Respondent's Argument: The respondent stated that the assessment order was issued after due process, including a show cause notice and personal hearing notices. They further submitted that the petitioner's rectification application would be considered on its merits, and appropriate orders would be passed in accordance with law within a time frame to be fixed by the Court.