GST - No more a Good & Simple Tax
GST officer raised 11 crore tax demand against 18 lacs actual tax liability - High Court intervenes
In a recent judgement Associated Power Structures Pvt Ltd Vs State of Bihar, Hon'ble Patna High Court has advised the GST officer to review and rectify his own assessment order. Illustratively, as against the original demand of Rs. 11 crores, the officer while reviewing his own order reduced it to 18 lacs and in another case from 8 crores to 2.8 crores.
High Court says "Such type of mistake shatters faith of the people in the system".
Hon'ble high court , while passing judgement cautious GST officer ,says - Well, the stand taken by the officer is quite fair, but we only fail to understand as to why the officer did not apply his mind at the time of passing of the impugned order. It is only when this Court pointed out the difference, wide enough for anyone to notice in imposing the amount of penalty, did the officer realizing his mistake, agreed to rectify the same. We only caution the officer to be careful in future and not commit such mistake again, for such type of mistake not only causes harassment to the parties but also shatters faith of the people in the system.
GST is still a long road for Ease of doing business in India
India has ranked 77th in ease of doing business. Such absurd high pitched tax demand orders by the Assessing Authorities with virtually no accountability make it difficult to do business in India. Everyone is not lucky enough to get relief from the courts,like in this case . Accountability of GST officers & other revenue authorities must be the part of the system to make a tax friendly environment for business.