Elsy Joy Vs Deputy Commissioner of State Tax (Kerala High Court)
In Elsy Joy v. Deputy Commissioner of State Tax, the Kerala High Court addressed a writ petition challenging a GST assessment order issued before the taxpayer’s response deadline. The petitioner argued that although the notice (Ext.P2) provided a response deadline of July 21, 2023, the assessment order (Ext.P4) was issued on July 11, 2023, violating the stipulated response period. The petitioner contended that this premature action breached principles of natural justice, as she was denied a fair chance to present her case.
The State’s counsel argued that the petitioner had already appealed Ext.P4 but was rejected as time-barred by the Appellate Authority (Ext.P7). While an option remained for a second appeal, the court acknowledged that Ext.P4’s issuance before the response deadline rendered the initial order procedurally unjust. Concluding that this procedural breach warranted judicial intervention, the court set aside both Ext.P4 and Ext.P7. The matter was remanded for fresh consideration, granting the petitioner two weeks to file her reply and directing the Deputy Commissioner to issue a new order only after a fair hearing.
The court’s decision emphasized the importance of respecting response timelines in assessment proceedings under GST. It underscored that adherence to procedural fairness safeguards taxpayers’ rights, and any deviation may justify judicial review under Article 226 of the Constitution. By setting aside the orders, the court also provided clarity on excluding the period between Ext.P4’s issuance and the current judgment from the limitation period, ensuring a fair reassessment process.
