P. G. Metal Vs Assistant Commissioner (ST) (Madras High Court)
Madras High Court held that order imposing penalty u/s. 122(1)(vii) is set aside and remitted back with a condition to deposit 25% of disputed tax via Electronic Cash Register since petitioner failed to appear.
Facts- The present writ petition is preferred by the petitioner. The petitioner has challenged the impugned Assessment Order, dated 26.02.2025 for the assessment year 2023-24. The impugned order has preceded a notice in DRC 01A, dated 16.12.2024 and a Show Cause Notice in DRC 01, dated 24.12.2024 and also personal hearing notices, dated 23.01.2025, 03.02.2025 and 07.02.2025.
Conclusion- Held that this Writ Petition is disposed of by quashing the impugned order on terms subject to the petitioner depositing 25% of the disputed tax in cash from the petitioner’s Electronic Cash Register within a period of thirty (30) days from the date of receipt of a copy of this order. The petitioner shall file a reply to the notice in DRC 01 dated 24.12.2024 by treating the impugned order as addendum to the Show Cause Notice. In case the petitioner complies with the above stipulations, the second respondent shall proceed to pass fresh orders on merits and in accordance with law as expeditiously as possible preferably within a period of three (3) months thereafter, after hearing the petitioner. Consequently, the penalty proceedings, dated 06.03.2025 issued under Section 122 of the respective GST enactments is also set aside and the case is remitted back to the first respondent for passing a fresh order, subject to the petitioner filing such reply within a period of thirty (30) days from the date of receipt of a copy of this order.
