2024 (5) TMI 1420 - HC - GST

Levy of penalty for non filing of the annual return - notices and orders were uploaded on the GST portal, but not communicated to the petitioner through any other mode - seeking an opportunity to be heard - violation of principles of natural justice - HELD THAT - By pointing out that the turnover of the petitioner did not exceed the threshold during the financial year 2019-2020, petitioner seeks an opportunity to contest the matter on merits. The petitioner has placed on record evidence of remittance of sum of Rs. 54,640/- towards the disputed tax demand relating to order dated 22.06.2023. On perusal of such order, it is clear that the tax proposal was confirmed because the petitioner did not reply to the show cause notice or participate in the personal hearing. In the circumstances outlined above, the interest of justice warrants that the petitioner be provided an opportunity to contest the matter on merits. The impugned orders dated 13.02.2023 and 22.06.2023 are set aside subject to verification of receipt of 10% of the disputed tax demand under order dated 22.06.2023. The petitioner is permitted to submit replies to the show cause notices within two weeks from the date of receipt of a copy of this order. Petition disposed off.

Summary

Issues involved: Challenge to order dated 22.06.2023 and penalty for non-filing of annual return dated 13.02.2023.

In W.P.No.11042 of 2024, the petitioner challenges an order dated 22.06.2023, while in W.P.No.11038 of 2024, the challenge is against an order dated 13.02.2023 imposing a penalty for non-filing of the annual return.

Challenge to order dated 22.06.2023:
The petitioner claims unawareness of the proceedings leading to the impugned orders as they were uploaded on the GST portal without direct communication. The petitioner asserts the discrepancy in GSTR 3B and GSTR 2B returns due to delayed sales reporting by the supplier. A partial remittance of the disputed tax demand has been made by the petitioner.

Challenge to penalty for non-filing of annual return dated 13.02.2023:
The petitioner argues that the requirement to file an annual return in Form GSTR 9 arises only if turnover exceeds Rs. 2 crores, which was not the case for the petitioner during the financial year 2019-2020. Evidence of remittance towards the disputed tax demand has been provided. The order imposing penalty was confirmed due to the petitioner's non-response to the show cause notice or participation in the hearing.

The High Court sets aside the impugned orders subject to verification of the partial tax demand remittance. The petitioner is granted two weeks to respond to show cause notices, and the respondent is directed to provide a reasonable opportunity for a personal hearing. Fresh orders are to be issued within three months from the receipt of the petitioner's replies. The writ petitions are disposed of without costs, and connected miscellaneous petitions are closed.