Order Date – 22 January 2024

Parties: Basheer Bags Vs Deputy State Tax Officer -2

Facts –

• The Petitioner, Basheer Bags, is engaged in the business of manufacturing and supplying bags He had engaged the services of a GST practitioner, Mr.V.Sahaya Pusparaj. Since the petitioner relied entirely on the said consultant, it is stated that the petitioner was not aware of the notice in Form ASMT-10 or the show cause notice in Form DRC-01. Therefore, the petitioner also did not participate in proceedings culminating in the assessment order.
• Further an affidavit affirmed by the consultant on 22.12.2023 was placed on record stating that the notices were not available on the window / screen for communication relating to regular returns and that the notices were in the window relating to additional notices.

Issue –

• Whether the non-communication by the consultant to the petitioner does justify interference with the order?

Order –

• The Single Bench of Hon’ble High Court observed that it is abundantly clear that the petitioner did not respond either to the intimation in Form GST-ASTM-10 or to the show cause notice in Form GST-DRC-01. In addition, the petitioner did not attend the personal hearing.
• While the explanations provided by the petitioner and the consultant are not wholly convincing, the fact remains that a registered person carrying on a small business did not have the opportunity to respond to the claim made by the tax department with regard to the discrepancy between the returns in Form GSTR-1 and Form GSTR-3B. Solely for the purpose of providing an opportunity to the petitioner, the impugned order calls for interference.
• Hence the impugned order is quashed, and the matter is remanded for re-consideration. It is made clear that the petitioner will not have an opportunity to respond to the show cause notice and the opportunity would be limited to participation in the proceedings before the assessing officer and making any submissions in relation thereto. The Writ petition is disposed of.