2024 (6) TMI 1156 - HC - GST

Principles of natural justice - denial of reasonable opportunity to the petitioner to contest the tax demand on merits - notices and the impugned order were uploaded in the View Additional Notices and Orders tab on the GST portal - mismatch between the GSTR-3B and the auto-populated GSTR-2A - HELD THAT - On examining the impugned order, it is evident that the tax proposal was confirmed because the petitioner did not reply to the show cause notice or attend the personal hearing. It is also clear that the tax proposal pertains to the mismatch between the returns filed by the petitioner and the auto-populated GSTR-2A. The impugned order dated 28.11.2023 is set aside and the matter is remanded to the respondent for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand within two weeks from the date of receipt of a copy of this order - Petition disposed off by way of remand.

Summary

Issues:
Denial of reasonable opportunity to contest tax demand on merits.

Analysis:
The petitioner challenged an order dated 28.11.2023, alleging a lack of opportunity to contest the tax demand. The petitioner claimed ignorance of the proceedings as notices and the order were uploaded on the GST portal. The confirmed tax proposal related to a mismatch between GSTR-3B and GSTR-2A. The petitioner expressed willingness to remit 10% of the disputed tax demand for a remand. The Government Advocate highlighted prior intimations, show cause notice, and a personal hearing notice preceding the impugned order.

The impugned order confirmed the tax proposal due to the petitioner's non-response to the show cause notice and absence at the personal hearing, concerning the discrepancy between filed returns and auto-populated GSTR-2A. The petitioner argued the availability of documents to prove valid Input Tax Credit. The court, in the interest of justice, set aside the order and remanded the matter for reconsideration, with a condition to remit 10% of the disputed tax demand within two weeks. The petitioner was granted an opportunity to reply to the show cause notice, followed by a fresh order within three months upon satisfaction of the remittance.

In conclusion, the writ petition was disposed of with the specified terms, without costs. The connected miscellaneous petitions were also closed as a result of the judgment.