M/s B. K. Steels v. The Assistant Commissioner

Introduction

The dispute pertained to the assessment proceedings for Financial Year 2022-23 initiated under Section 74 of the CGST Act, 2017. Earlier, the petitioner had challenged the assessment order before the High Court in Writ Petition Nos. 18654 and 18766 of 2024. By its common order dated 25.07.2024, the High Court had set aside the assessment order solely on the ground that the mandatory opportunity of personal hearing under Section 75(4) had not been provided. The Court restored the matter to the Assessing Officer with specific directions to adjudicate the proceedings based on the original Show Cause Notice (SCN), grant the petitioner a personal hearing, and consider the reply to be filed by the petitioner. It was also specifically directed that no fresh show cause notice was required.

However, instead of complying with these directions, the Assessing Officer issued a fresh Show Cause Notice for the same assessment year and thereafter passed a fresh order dated 11.03.2026 under Section 74. Aggrieved by the Assessing Officer’s failure to follow the earlier remand directions and alleging violation of principles of natural justice, the petitioner once again approached the High Court.