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2024 (6) TMI 478 - HC - GSTChallenge to assessment order - violation of principles of natural justice - the intimation, notice and impugned order were uploaded on the View Additional Notices and Orders tab on the GST portal, but not communicated to the petitioner through any other mode - HELD THAT - On comparing the show cause notice and the impugned order, it is evident that the show cause notice was issued under Section 73 although 100% penalty is mentioned therein. In the summary of the impugned order, reference is made to Section 73, whereas the detailed order also makes reference to Section 74. As a registered person, the petitioner was under an obligation to monitor the GST portal on an ongoing basis and failed to do so. However, in view of the above observations, the impugned order calls for interference, albeit by putting the petitioner on terms. The impugned order dated 29.07.2023 is set aside and the matter is remanded for reconsideration on condition that the petitioner remits 10% of the disputed tax demand within a period of two weeks from the date of receipt of a copy of this order. The writ petition is disposed off.
Issues involved: Challenge to assessment order on grounds of breach of principles of natural justice.
The petitioner challenged an assessment order dated 29.07.2023, alleging lack of awareness of the proceedings leading to the order as the intimation, notice, and order were only uploaded on the GST portal without any other communication. The petitioner filed a writ petition based on these circumstances. The petitioner contended that the show cause notice was issued under Section 73 of GST enactments, which specifies a 100% penalty, whereas the impugned order referred to both Sections 73 & 74. The petitioner agreed to remit 10% of the disputed tax demand as a condition for remand. The respondent, represented by Mr. C. Harsha Raj, argued that the petitioner had sufficient opportunities to contest the tax demand, with intimation in February 2023, a show cause notice on 26.02.2023, and three reminders thereafter. The respondent maintained that the amounts were correctly mentioned in the show cause notice. Upon comparison of the show cause notice and the impugned order, it was noted that the show cause notice was issued under Section 73, despite mentioning a 100% penalty. The impugned order referred to Section 73 in the summary but also made reference to Section 74 in the detailed order. The court observed that the petitioner, as a registered person, had an obligation to monitor the GST portal regularly, which was not done. However, due to these discrepancies, the impugned order was set aside, and the matter was remanded for reconsideration with the condition that the petitioner remits 10% of the disputed tax demand within two weeks. The court directed the petitioner to submit a reply to the show cause notice within the specified period. Upon receiving the reply and being satisfied with the 10% remittance, the respondent was instructed to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh order within three months. All contentions were left open for the petitioner during the remanded proceedings. The writ petition was disposed of without any order as to costs, and connected miscellaneous petitions were closed.
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