2024 (7) TMI 240 - HC - GST

Violation of principles of natural justice - assessment order assailed on the ground that the petitioner discharged the tax liability in full - HELD THAT - The petitioner has placed on record the GSTR 3B return for the month of February 2022 -23. The return discloses the payment of CGST of Rs. 3,07,825.5/- and SGST of a like amount. On perusal of the impugned order, the amount specified as payable by the petitioner tallies with the amount indicated in the GSTR 3B returns. On instructions, however, respondents submits that these amounts were not received. This is a matter to be verified by the assessing officer. Nonetheless, a case is made out for reconsideration on this basis, subject to putting the petitioner on terms. The impugned order dated 26.04.2023 is set aside on 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:
Challenge to assessment order on grounds of breach of natural justice and full tax payment.

Analysis:
The petitioner contested an assessment order dated 26.04.2023, citing violations of natural justice principles and claiming full tax payment. The petitioner argued that GST on civil contracts was initially at 12% and later increased to 18% from 13.07.2022. Despite issuing an invoice with 12% GST initially, a revised invoice was later issued with 18% GST. The petitioner paid the differential tax of Rs. 3,07,827/- towards CGST and SGST while filing the return in Form GSTR 3B for February 2022-23. The petitioner, unaware of proceedings, submitted a reply post the impugned order issuance. The petitioner agreed to remit 10% of the disputed tax demand for remand.

Analysis:
The Additional Government Pleader for the respondent contended that the principles of natural justice were adhered to by issuing relevant intimation, show cause notice, and a personal hearing notice. The petitioner submitted the GSTR 3B return for February 2022-23, reflecting the payment of CGST and SGST as per the impugned order. However, the respondent claimed the amounts were not received, necessitating verification by the assessing officer. Despite this discrepancy, reconsideration was warranted, subject to certain conditions being met.

Analysis:
Consequently, the High Court set aside the impugned order dated 26.04.2023 on 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 verification of the remittance and satisfaction of the conditions, the respondent was directed to provide a reasonable opportunity, including a personal hearing, and issue a fresh order within three months. With the assessment order annulled, the bank and property attachments were lifted. The Writ Petition was disposed of with no costs, and the connected miscellaneous petition was closed.