2024 (6) TMI 1154 - HC - GST

Violation of principles of natural justice - amounts paid by the petitioner towards tax and interest were not taken into consideration - reasonable opportunity was not provided - Reversal of ITC - HELD THAT - On perusal of the impugned order, it is evident that the respondent did not take into consideration the payment made by the petitioner under payment receipt dated 06.05.2023. Consequently, the impugned order requires reconsideration. The impugned order dated 19.07.2023 is set aside and the matter is remitted for reconsideration. The petitioner is permitted to submit a reply to the show cause notice dated 22.05.2023 within a period of two weeks from the date of receipt of a copy of this order - Petition disposed off by way of remand.

Summary

Issues:
Challenge to an order in original for non-consideration of tax and interest payments and lack of reasonable opportunity.

Analysis:
The petitioner contested an order dated 19.07.2023, arguing that payments made towards tax and interest were disregarded, and a fair opportunity was not granted. Initially, a notice in Form ASMT 10 was sent to the petitioner on 11.03.2023, to which the petitioner agreed to reverse Input Tax Credit (ITC) for CGST and SGST. Subsequently, a show cause notice was issued on 22.05.2023, which the petitioner did not respond to, leading to the impugned order.

During the proceedings, the petitioner's counsel highlighted the reply to the ASMT 10 notice and the payment receipt for tax and interest payments, along with the subsequent upload of Form GST DRC-03. On the other hand, the government advocate pointed out that the petitioner uploaded Form GST DRC-03 only after the impugned order was issued and emphasized that the entire tax liability was not settled by the petitioner.

Upon examination, it was evident that the respondent failed to consider the payment made by the petitioner on 06.05.2023. Consequently, the court set aside the impugned order and remitted the matter for reconsideration. The petitioner was granted two weeks to respond to the show cause notice and the respondent was directed to provide a fair opportunity, including a personal hearing, before issuing a fresh order within three months.

In conclusion, the writ petition was disposed of without costs, and connected miscellaneous petitions were closed as per the terms outlined in the judgment.