2024 (8) TMI 838 - HC - GST

Violation of principles of natural justice - non-service of notice - Calling for records of the respondents and quash the impugned order under Section 73 of the Tamil Nadu Goods and Service Tax Act, 2017 - availment of excess input tax credit - HELD THAT - In the present case, it appears that the notices have been uploaded in the GST portal and the same were not at all physically served to the petitioner, due to which, the petitioner was unaware about the said notice. Hence, the reasons provided by the petitioner for being unaware of the notice, which was uploaded in the web portal, are appears to be genuine. Further, this Court is of the view that no order can be passed without providing sufficient opportunities to the petitioner. However, in the present case, no reply was filed by the petitioner and no opportunity of personal hearing was provided to the petitioner. Hence, the impugned order is liable to be set aside. The impugned order dated 12.12.2023 is set aside and matter remanded back to the respondent on condition that the petitioner shall deposit 10% of the disputed tax demand of the assessment year, within a period of four (4) weeks from the date of receipt of a copy of this order and thereafter, the petitioner is directed to file a reply within a period of two (2) weeks - petition disposed off by way of remand.

Summary

The High Court of Madras set aside the impugned order under Section 73 of the TNGST Act/CGST Act dated 12.12.2023 for FY 2017-18, as it was not physically served to the petitioner, violating principles of natural justice. The matter is remanded back to the respondent for reconsideration, with the petitioner required to deposit 10% of the disputed tax demand within four weeks and file a reply within two weeks. Personal hearing to be provided before passing new orders. No costs awarded.