GST Assessment Order Set Aside: Notice uploaded to the “additional notices and orders” tab on the GST portal., Opportunity Granted Upon Deposit of 25% disputed tax
Summary in Key Points:
Issue: Was the assessment order valid when it was only uploaded to the GST portal and not properly served on the assessee, preventing them from participating in the proceedings?
Facts: During a scrutiny of the assessee’s returns for the period 2018-19, a discrepancy was found between GSTR-3B and GSTR-2A. A notice was issued, followed by a reminder and a scheduled personal hearing. However, neither the show cause notice nor the assessment order was served on the assessee by registered post or in person. The order was simply uploaded to the “additional notices and orders” tab on the GST portal. The assessee claimed to be unaware of the proceedings.
Decision: The court set aside the impugned order, subject to the assessee depositing 25% of the disputed tax. This allowed the assessee an opportunity to present their objections before the adjudicating authority.
Important Note: This decision highlights the importance of proper service of notices and orders in assessment proceedings. Merely uploading the order to the GST portal without ensuring proper service on the assessee violates principles of natural justice, as it prevents them from exercising their right to be heard. The court’s decision to set aside the order and provide an opportunity for the assessee to present their case upon depositing a portion of the disputed tax balances the interests of both the taxpayer and the revenue.
W.M.P. Nos.42766 and 42767 of 2024
| (a) | The impugned order dated 12.04.2024 is set aside. |
| (b) | The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent, within a period of four weeks from the date of receipt of a copy of this order. |
| (c) | If any amount has been recovered or paid out of the disputed taxes, including by way of pre-deposit in appeal, the same would be reduced/adjusted, from/towards the 25% of disputed taxes directed to be paid. The assessing authority shall then intimate the balance amount out of 25 % of disputed taxes to be paid, if any, within a period of one week from the date of receipt of a copy of this order. The petitioner shall deposit such remaining sum within a period of three weeks from such intimation. |
| (d) | The entire exercise of verification of payment, if any, intimation of the balance sums, if any, to be paid for compliance with the direction of payment of 25% of the disputed taxes, after deducting the sums already paid and payment by the petitioner of the balance amount, if any, on intimation in compliance with the above direction shall be completed within a period of four weeks from the date of receipt of copy of this order. |
| (e) | Failure to comply with the above condition viz., payment of 25% of disputed taxes within the stipulated period i.e., four weeks from the date of receipt of a copy of this order shall result in restoration of the impugned order. |
| (f) | If there is any recovery by way of attachment of Bank account or garnishee proceedings, the same shall be lifted /withdrawn on complying with the above condition viz., payment of 25 % of the disputed taxes. |
| (g) | On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. It is made clear that if the above conditions viz., 25% of disputed taxes is not complied or objections are not filed within the stipulated period, four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored. |