Allahabad HC Quashes GST Assessment order passed without issuance of notice u/s 46 of GST Act [Read Order]
It was evident that the assessment order under section 62 of the GST Act suffers from serious lacuna due to non-issuance of notice under section 46 of the GST Act.
![Allahabad HC Quashes GST Assessment order passed without issuance of notice u/s 46 of GST Act [Read Order] Allahabad HC Quashes GST Assessment order passed without issuance of notice u/s 46 of GST Act [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/05/GST-Assessment-order-.jpg)
The Allahabad High Court quashed the Goods and Service Tax (GST) assessment order passed without issuance of notice under section 46 of the GST Act, 2017.
Xestion Advisor Private Limited, the petitioner is a Company incorporated under the Companies Act, 1956 and engaged in the business of providing management consultancy services. On 21.09.2020, the respondent no. 2 proceeded to pass the assessment order under Form DRC - 07 for non-compliance in filling Form GSTR-3B under the due date.
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Thereafter, notice under section 46 of the GST Act was uploaded on the GST portal on 25.09.2020. On 03.12.2020, the petitioner filed return for the month of April, 2020 declaring Nil tax. Against the order dated 21.09.2020, the petitioner preferred an appeal, which has been dismissed vide order dated 12.06.2024.
Counsel for the petitioner further submitted that the notice under section 46 of the GST Act was issued on 25.09.2020 for submitting the return within a period of 15 days to which the tax liability may be assessed under section 62 of the GST Act; whereas, the order dated 21.09.2020 under section 62 of the GST Act had already been passed 4 days prior to issuance of notice.
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Further submitted that the petitioner did not get opportunity to file return within the period prescribed in the notice. The impugned order has been passed in complete defiance of the mandatory requirement of notice under section 46 of the GST Act and therefore, the impugned order suffers from serious infirmity for non-compliance of principles of natural justice and procedural requirement prescribed under the Statute.
The record revealed that admittedly, an order dated 21.09.2020 was passed undersection 62 of the GST Act creating demand against the petitioner to the tune of Rs. 19,80,000/-, but the notice under section 46 of the GST Act was issued on 25.09.2020, much after the passing of the order dated 21.09.2020.
It was evident that the assessment order under section 62 of the GST Act suffers from serious lacuna due to non-issuance of notice under section 46 of the GST Act. Even the appellate court has failed to taken note of the said fact. Therefore, the impugned orders suffer from serious infirmity for non-compliance of principles of natural justice and procedural requirement prescribed under the Statute in absence of proper service on the petitioner.
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Justice Piyush Agrawal held that the impugned order dated 21.09.2020 passed by the respondent no. 2 as well as the impugned order dated 12.06.2024 passed by the respondent no. 1 cannot be sustained in the eyes of law. The same are hereby quashed.
The single bench allowed the petition and remanded the matter to the respondent no.2/Deputy Commissioner, State Tax,Sector – 8, Noida, Gautam Buddha Nagar to reconsider by issuing a fresh notice to the petitioner within a period of two weeks.
To Read the full text of the Order CLICK HERE
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