Allahabad High Court Sets Aside GST Assessment for Ignoring Filed Documents

The petitioner, M/s Shree Parshwa Traders through its proprietor Sachin Jain, challenged the appellate order dated 06.01.2023 affirming the assessment order dated 23.02.2022 passed under the GST regime.

The tax authorities had raised a demand primarily on two grounds: first, that the registration of the selling dealer had been cancelled; and second, that the petitioner failed to establish bona fide transactions and actual movement of goods.

Issue Raised: Whether assessment and appellate orders can be sustained when they are founded on an incorrect assumption that the assessee failed to furnish documents and when relevant material on record has not been considered.

HC’s Judgment: The Hon’ble High Court held that the impugned orders were contrary to the record and suffered from clear non-consideration of material evidence. Since the authorities proceeded on an incorrect premise that the petitioner had not filed supporting documents, the orders could not stand.

Therefore, the assessment order dated 23.02.2022 and the appellate order dated 06.01.2023 were set aside. The matter was remitted to the Assessing Authority to pass fresh orders after granting due opportunity to the petitioner and considering all documents on record, including the decision in North End Food Marketing Pvt. Ltd. v. State of U.P..

The Assessing Authority was directed to complete the exercise preferably within eight weeks. The amount deposited by the petitioner was ordered to be released, subject to the outcome of the fresh assessment.

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