2024 (7) TMI 1199 - HC - GST

Challeneg to assessment order - petitioner was not provided a reasonable opportunity to contest the tax demand on merits - petitioner asserts that he was unaware of proceedings since the notices and the impugned order were uploaded in the view additional notices and orders tab on the GST portal - HELD THAT - On perusal of the impugned order, it is evident that ITC was reversed for violation of sub-section(4) of Section 16 of applicable GST enactments. It is also evident that the tax proposal was confirmed for the reason that the petitioner did not reply to the notice. In these circumstances, 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. Therefore, impugned order dated 02.06.2023 is set aside subject to the condition that the petitioner remits 10% of the disputed tax demand within a period of two weeks from the date of receipt of a copy of this order. Within the aforesaid period, the petitioner is permitted to submit a reply to the show cause notice - Petition disposed off.

Issues:
1. Assessment order challenged for lack of reasonable opportunity to contest tax demand.
2. Allegation of unawareness of proceedings due to notices uploaded on GST portal.
3. Petitioner willing to remit 10% of disputed tax demand for remand.
4. Government Advocate argues sufficient opportunities were provided.
5. ITC reversal and tax proposal confirmation due to lack of reply to notice.
6. Setting aside impugned order with condition of remitting 10% of disputed tax demand.
7. Directions for petitioner to reply to show cause notice and respondent to issue fresh order.

Analysis:

1. The petitioner challenged the assessment order dated 02.06.2023, contending that a reasonable opportunity to contest the tax demand on merits was not provided. The proceedings against the petitioner began with a show cause notice dated 17.03.2022, leading to the impugned order dated 02.06.2023. The petitioner claimed unawareness of the proceedings as the notices and order were uploaded on the GST portal, specifically in the "view additional notices and orders" tab.

2. The petitioner, through learned counsel, expressed willingness to remit 10% of the disputed tax demand as a condition for remand. On the other hand, the Government Advocate argued that sufficient opportunities were indeed provided to the petitioner. He highlighted the issuance of a notice in Form GST ASMT-10, an intimation, and a show cause notice preceding the impugned order.

3. The impugned order revealed that Input Tax Credit (ITC) was reversed for violating Section 16(4) of the relevant GST enactments. Additionally, the tax proposal was confirmed due to the petitioner's failure to respond to the notice. However, the court deemed it appropriate to set aside the order, subject to the condition that the petitioner remits 10% of the disputed tax demand within two weeks. The petitioner was granted the opportunity to submit a reply to the show cause notice within the specified period.

4. Upon receiving the petitioner's reply and being satisfied with the remittance, the respondent was directed to provide a reasonable opportunity to the petitioner, including a personal hearing. Subsequently, the respondent was instructed to issue a fresh order within two months from the date of receiving the petitioner's reply. The court disposed of the case on these terms, with no costs incurred and related motions closed.

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