2024 (6) TMI 1247 - HC - GST

Challenge to assessment order - documents submitted by the petitioner were not taken into consideration and on the ground that the tax proposal was confirmed on a ground that was not raised in the show cause notice - HELD THAT - The only reply in respect of proceedings initiated by the first respondent is the reply dated 11.10.2023. Apart from uploading a couple of documents, the petitioner failed to respond to the show cause notice. In the show cause notice, the tax proposal was founded on a mismatch between the petitioner's GSTR-3B returns and the auto-populated GSTR-2A. The impugned order refers both to Section 16(4) of applicable GST enactments and to the mismatch. In those circumstances, interference is not warranted merely because Section 16(4) was also referred to - albeit by putting the petitioner on terms, it is just and appropriate that the petitioner be provided an opportunity to contest the tax demand on merits. The impugned order dated 30.01.2024 is set aside and the matter is remanded to the first respondent for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand within three weeks from the date of receipt of a copy of this order - Petition disposed off by way of remand.

Summary

Issues:
Assessment order challenged on grounds of documents not considered and tax proposal confirmed on a different ground. Claim of non-receipt of show cause notice and order.

Analysis:
The petitioner contested an assessment order dated 30.01.2024, arguing that documents submitted were disregarded, and the tax proposal was confirmed based on an unraised ground. The writ petition was filed, alleging non-receipt of the show cause notice and impugned order. The petitioner received notices, replied to them, and the impugned order was issued. The petitioner's counsel highlighted that despite submitting documents, they were not considered, and proceedings were initiated but later dropped. The counsel argued that the tax proposal was confirmed without offering a personal hearing and referring to incorrect dates.

The Additional Government Pleader for the respondents acknowledged the notices issued and the petitioner's uploaded documents. It was noted that the petitioner failed to respond adequately to the show cause notice, which was based on discrepancies in GST returns. The impugned order referenced relevant GST enactments and the discrepancies. The court found that although the tax demands were confirmed due to the lack of objections from the taxpayer, the petitioner should be given an opportunity to contest the tax demand on merits.

Consequently, the court set aside the impugned order dated 30.01.2024 and remanded the matter to the first respondent for reconsideration. The petitioner was required to remit 10% of the disputed tax demand within three weeks and submit a reply to the show cause notice. Upon satisfaction of the conditions, the first respondent was directed to provide a reasonable opportunity for a personal hearing and issue a fresh order within three months. The bank attachment was lifted, and the respondent was restrained from initiating further proceedings. The writ petition was disposed of with no costs, and connected petitions were closed.