2024 (8) TMI 518 - HC - GST

Violation of principles of natural justice - petitioner did not have a reasonable opportunity to contest the tax demand on merits - mismatch between the petitioner's turnover as per the GSTR 3B return in comparison to the GSTR 1 statement - HELD THAT - On perusal of the impugned order, it is evident that the tax proposal pertains to a mismatch between the petitioner's turnover as per the GSTR 3B return in comparison to the GSTR 1 statement. By taking into account the assertion that the petitioner could not participate in proceedings on account of being unaware of the same, the interest of justice warrants that the petitioner be provided an opportunity to contest the tax demand on merits, albeit by putting the petitioner on terms. The impugned order dated 23.08.2023 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. Within the said period, the petitioner is permitted to submit a reply to the show cause notice - petition disposed off.

Summary

The petitioner challenged an order regarding a tax demand, claiming lack of opportunity to contest it. The court set aside the order, directing the petitioner to remit 10% of the disputed tax demand within two weeks and submit a reply. The respondent must then provide a reasonable opportunity for the petitioner to contest the tax demand and issue a fresh order within three months. Case disposed of with no costs.