GST Assessment Order Quashed for Erroneously Treating Registered Dealer as Unregistered

Issue: Whether a GST assessment order made under Section 63 (applicable to unregistered persons) is valid when the assessee is a registered dealer and has paid the due taxes.

Facts:

• The assessee, a registered GST dealer, challenged an assessment order passed under Section 63, which is meant for unregistered persons.
• The assessee argued that they had duly paid the tax and should not be assessed under the provision for unregistered dealers.
• The revenue admitted that the assessee was indeed a registered dealer and that the tax paid was reflected in their new register.
• The assessment order was passed due to an oversight in noticing the tax payment.

Decision:

• The court quashed the impugned assessment order.
• The court recognized that the assessee was a registered dealer and had paid the tax, making the assessment under Section 63 erroneous.

Key Takeaways:

• This case highlights the importance of accurate record-keeping and verification by tax authorities before initiating assessment proceedings.
• Assessing a registered dealer under the provisions meant for unregistered persons is an error that can invalidate the assessment order.
• This decision underscores the need for due diligence by tax authorities to ensure that assessments are made under the correct provisions of the law.