2024 (6) TMI 891 - HC - GST

Violation of principles of natural justice - non-service of SCN - impugned order were uploaded on the view additional notices and order tab of the GST portal and not communicated to the petitioner through any other mode - mismatches between GSTR 3B of the petitioner and the auto populated GSTR 2A - HELD THAT - On perusal of the impugned order, it appears that the tax proposal pertains entirely to non payment of tax under reverse charge mechanism. Learned counsel for the petitioner pointed out that such tax proposal was a result of the petitioner making an inadvertent error while filling up GSTR 3B returns. In these circumstances, albeit by putting the petitioner on terms, it is just and necessary that the petitioner be provided an opportunity to contest the tax demand on merits. The impugned order dated 28.12.2023 is set aside, subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a maximum period of two weeks from the date of receipt of a copy of this order - Petition disposed off.

Summary

Issues involved: Breach of principles of natural justice in tax assessment, inadvertent error in filling Form GSTR 3B, non payment of tax under reverse charge mechanism.

Breach of principles of natural justice: The petitioner challenges an order dated 28.12.2023 on the basis of breach of principles of natural justice, claiming unawareness of proceedings due to the part-time Accountant's failure to inform about them. The petitioner asserts the need for an opportunity to contest the tax proposal arising from an inadvertent error in Form GSTR 3B, denying any short payment of GST.

Inadvertent error in filling Form GSTR 3B: The tax proposal in question relates to non-payment of tax under reverse charge mechanism due to an inadvertent error while filling up GSTR 3B returns. Acknowledging the inadvertent nature of the error, the court deems it just and necessary to allow the petitioner an opportunity to contest the tax demand on its merits.

Non-payment of tax under reverse charge mechanism: The impugned order is set aside with the condition that the petitioner remits 10% of the disputed tax demand within three weeks and submits a reply to the show cause notice within the same period. Upon satisfaction of the remittance and receipt of the reply, the respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh assessment order within three months. The case is disposed of with no costs incurred.