2024 (7) TMI 735 - HC - GST

Breach of principles of natural justice - service of SCN - petitioner was unaware of proceedings since the notices and orders were uploaded in the View additional notices and order tab of the GST portal, but not communicated to the petitioner through any other mode - HELD THAT - As a registered person under applicable GST enactments, the petitioner is under an obligation to monitor the GST portal on an ongoing basis. Therefore, the explanation provided by the petitioner is not entirely convincing. At the same time, it should be noticed that the tax demand was confirmed only because the petitioner failed to submit a reply to the show cause notice and attend the personal hearing. In the overall facts and circumstances, albeit by putting the petitioner on terms, the interest of justice warrants that an opportunity be provided to the petitioner to contest the tax demand. The impugned order dated 16.08.2023 is set aside and the matter is remanded for reconsideration, subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a maximum period of two weeks from the date of receipt of a copy of this order - petition disposed off by way of remand.

Summary

Issues Involved:
Challenge to order and demand notice based on breach of principles of natural justice in a tax matter.

Analysis:
The petitioner, engaged in supplying granite and related products, challenges an order and demand notice issued based on a tax proposal regarding a mismatch between GSTR 3B returns and auto-populated GSTR 2A. The petitioner claims unawareness of proceedings as notices were only uploaded on the GST portal, not communicated directly. The petitioner seeks an opportunity to contest the tax demand on merits, agreeing to remit 10% of the disputed tax as a condition for remand.

Analysis:
The Government Advocate points out that the petitioner received a notice in Form ASMT 10, an intimation, and a show cause notice, with a personal hearing offered. The petitioner, as a registered person under GST laws, is obligated to monitor the GST portal regularly. The court notes the petitioner's failure to reply to the show cause notice and attend the personal hearing led to the confirmation of the tax demand. However, considering the circumstances, the court deems it just to provide the petitioner with an opportunity to contest the tax demand.

Analysis:
The court sets aside the impugned order and remands the matter for reconsideration, with the condition that the petitioner remits 10% of the disputed tax demand within two weeks. The petitioner is allowed to submit a reply to the show cause notice within the same period. Upon receipt and verification of the remittance, the respondent is directed to provide a reasonable opportunity for a personal hearing and issue a fresh assessment order within three months.

Analysis:
The writ petition is disposed of with no costs, and the related motions are closed. The judgment emphasizes the importance of principles of natural justice in tax matters and ensures that the petitioner is granted a fair opportunity to contest the tax demand, balancing the interests of both parties involved.