2024 (8) TMI 1130 - HC - GST

Challenge to impugned order - petitioner was unaware of proceedings culminating in the impugned order - mismatch between the GSTR 3B returns of the petitioner and the auto populated GSTR 2A - petitioner agrees to remit 10% of the disputed tax demand as a condition for remand - HELD THAT - On perusal of the impugned order it is evident that the tax proposal pertains to the mismatch between the GSTR 3B returns of the petitioner and the auto populated GSTR 2A. It is also evident that the tax proposal was confirmed because the petitioner did not reply to the show cause notice and the personal hearing notices. In effect the tax proposal was confirmed without considering the objections of the petitioner. In these circumstances albeit by putting the petitioner on terms it is just and necessary to provide the petitioner an opportunity to contest the tax demand on merits. The impugned order dated 18.12.2023 is set aside 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. Within the aforementioned period the petitioner is also permitted to submit a reply to the show cause notice - Petition disposed off.

Summary

The High Court of Madras set aside the impugned order dated 18.12.2023, allowing the petitioner to contest the tax demand by remitting 10% of the disputed tax within two weeks. The petitioner can also submit a reply to the show cause notice within this period. The respondent must provide a reasonable opportunity for a personal hearing and issue a fresh assessment order within three months from the date of receipt of the petitioner's reply. Case W.P. No. 12406 of 2024 is disposed of with no costs.