2024 (6) TMI 1250 - HC - GST

Violation of principles of natural justice - SCN and impugned order were uploaded on the GST portal, but not communicated to the petitioner through any other mode - mismatch between the petitioner's GSTR-3B returns and the GSTR-1 statement - HELD THAT - The impugned order discloses that the tax proposal was confirmed because the petitioner did not respond to the show cause notice or utilize the opportunity of participating in personal hearings. Since the petitioner asserts that such participation was not possible on account of not being aware of the proceedings, the interest of justice warrants that the petitioner be provided an opportunity, albeit by putting the petitioner on terms. The impugned order dated 30.12.2023 is set aside 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. Within the said period, the petitioner is permitted to submit a reply to the show cause notice - petition disposed off.

Summary

Issues: Challenge to assessment order on grounds of breach of natural justice.

In this case, the petitioner challenged an assessment order dated 30.12.2023 on the basis of a breach of principles of natural justice. The petitioner argued that the show cause notice and impugned order were uploaded on the GST portal but were not communicated through any other mode. It was asserted that a tax consultant was engaged for GST compliances, and the show cause notice was not brought to the petitioner's notice. The petitioner's counsel highlighted a mismatch between the petitioner's GSTR-3B returns and GSTR-1 statement, along with discrepancies in the issuance of notices by different officers. The petitioner agreed to remit 10% of the disputed tax demand as a condition for remand.

The respondent, represented by the Additional Government Pleader, contended that the principles of natural justice were adhered to by issuing Form ASMT-10, show cause notice, and reminder notices. The impugned order confirmed the tax proposal due to the petitioner's non-response to the notices and failure to participate in personal hearings. However, since the petitioner claimed unawareness of the proceedings hindering their participation, the court deemed it necessary to provide an opportunity to the petitioner under certain conditions.

The court set aside the impugned order subject to the condition that the petitioner remits 10% of the disputed tax demand within two weeks and submits a reply to the show cause notice within the same period. Upon satisfaction of the remittance, the respondent was directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh order within three months from receiving the reply. The writ petition was disposed of with no order as to costs, and connected miscellaneous petitions were closed accordingly.