2024 (4) TMI 280 - HC - GST

Violation of principles of natural justice - reasonable opportunity to contest the tax demand not provided - validity of assessment order - HELD THAT - It is noticeable that the petitioner replied to the show cause notices on the very next day and requested for 30 days' time to reply. Without responding to the petitioner's reply, the impugned orders were issued within about 15 or 16 days from the date of receipt of the reply. The impugned orders do not refer to the petitioner's reply or set out any reasons for rejecting the reply. Since the petitioner was deprived of a reasonable opportunity to contest the tax demand, these impugned orders are unsustainable. The impugned orders dated 16.10.2023 are quashed and these matters are remanded for reconsideration. The petitioner is permitted to submit a reply to the respective show cause notice within a period of 15 days from the date of receipt of a copy of this order. Petition disposed off by way of remand.

Summary

Issues involved: Challenge to orders u/s assessment periods 2017-2018 and 2018-2019 on grounds of breach of natural justice.

Summary:
The petitioner, a registered person under GST enactments, challenged orders dated 16.10.2023 for assessment periods 2017-2018 and 2018-2019, citing breach of natural justice. The petitioner received intimation in Form GST DRC-01A on 27.01.2023, followed by a show cause notice on 28.09.2023. Despite requesting 30 days to reply due to the need to gather information, the impugned orders were issued on 16.10.2023, within about 15 days of the reply. The impugned orders did not acknowledge the petitioner's reply or provide reasons for rejecting it. The respondent argued that personal hearing opportunities were given post show cause notices, hence no interference was necessary.

The Court noted that the impugned orders were issued hastily without considering the petitioner's reply or providing reasons for rejection. As the petitioner was not given a fair opportunity to contest the tax demand, the impugned orders were deemed unsustainable. Consequently, the orders dated 16.10.2023 were quashed, and the matters were remanded for reconsideration. The petitioner was granted 15 days to respond to the show cause notice, after which the respondent was directed to allow a reasonable opportunity, including a personal hearing, before issuing fresh orders within two months from receipt of the reply.

The writ petitions were disposed of with no costs, and connected miscellaneous petitions were closed.