2024 (6) TMI 949 - HC - GST

Seeking quashing of impugned order - petitioner is willing to deposit 10% of the disputed tax to the credit of the respondent - HELD THAT - This Court is inclined to exercise its discretion in favour of the petitioner after recording the submission of the learned counsel for the petitioner that the petitioner is willing to deposit 10% of the disputed tax to the credit of the respondent. The impugned order, which stands quashed, shall be treated as addendum to the show cause notice issued to the petitioner. The petitioner shall file a reply within a period of 30 days from the date of receipt of a copy of this order. The petitioner shall pay the amount from its Electronic Cash Register within the aforesaid period. It is submitted that the respondent will pass final orders on merits and in accordance with law within a period of 3 months thereafter. Petition allowed.

Summary

Issues: Quashing of impugned order dated 31.07.2023 and 16.08.2023

The petitioner approached the Madras High Court to quash the impugned order dated 31.07.2023 and 16.08.2023 issued by the respondent, which were related to GST matters. The petitioner contended that they were not fully conversant with the GST common portal and therefore failed to notice the communication of the notices as well as the impugned order. The petitioner sought the opportunity to demonstrate before the respondent that the impugned demand was unjust and unwarranted, offering to deposit 10% of the disputed tax amount.

Decision and Reasoning:

The learned counsel for the petitioner argued for quashing the impugned order, emphasizing the petitioner's lack of awareness regarding the notices due to their limited understanding of the GST common portal. On the other hand, the Additional Government Pleader for the respondent cited legal precedents to support the dismissal of the writ petition. Despite this, the High Court exercised its discretion in favor of the petitioner, considering the submissions and averments made. The Court directed the impugned order to be quashed and treated as an addendum to the show cause notice, requiring the petitioner to respond within 30 days and deposit 10% of the disputed tax. The respondent was instructed to issue final orders within three months.

Additional Ruling:

Due to the petitioner's frozen bank account, the Court ordered the account to be de-frozen after recovering the 10% deposit, if available. No costs were imposed, and connected Miscellaneous Petitions were closed as a result of the judgment.