2024 (5) TMI 176 - HC - GST

Validity of assessment order - failure to provide a reasonable opportunity to the petitioner - violation of principles of natural justice (audi alterem partem) - HELD THAT - On perusal of the orders impugned herein, it is evident that the tax demand pertains entirely to the discrepancy between the petitioner's GSTR 3B returns and the auto populated GSTR 2A. Learned counsel for the petitioner asserts that the petitioner is in a position to produce necessary documents in compliance with Circular No.183. In these circumstances, albeit by putting the petitioner on terms, it is just and necessary to provide another opportunity to the petitioner. The orders impugned herein are set aside subject to the condition that the petitioner remits 10% of the disputed tax demand in respect of each assessment period as agreed to within a period of two weeks from the date of receipt of a copy of this order - Petition disposed off.

Summary

Issues involved: Challenge to assessment orders due to lack of reasonable opportunity provided to the petitioner.

Summary:
In five writ petitions, assessment orders for five distinct periods were challenged by the petitioner for not being given a reasonable opportunity. The petitioner claimed that all notices and orders were uploaded on the GST portal, which they were unaware of. The tax demand was related to discrepancies between the petitioner's GSTR 3B returns and auto-populated GSTR 2A. The petitioner expressed readiness to remit 10% of the disputed tax demand as a condition for remand.

The learned Government Advocate accepted notice for the respondent and highlighted that multiple opportunities were given to the petitioner through intimation, show cause notice, and personal hearing notice. The court observed that the tax demand solely arose from the discrepancy in the petitioner's returns and the auto-populated form. It was acknowledged that the petitioner could produce necessary documents in compliance with Circular No.183. Therefore, the court deemed it just and necessary to provide another opportunity to the petitioner.

Consequently, the impugned orders were set aside with the condition that the petitioner remits 10% of the disputed tax demand for each assessment period within two weeks. The petitioner was allowed to submit a reply to the show cause notice within the same period. Upon receipt of the reply and confirmation of the remittance, the respondent was directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue fresh orders within two months.

The five writ petitions were disposed of under the specified conditions, with no costs incurred. As a result, the related miscellaneous petitions were closed.