2024 (8) TMI 1249 - HC - GST

Challenge to impugned order - challenge on the ground that the petitioner did not have a reasonable opportunity to contest the tax demand on merits - violation of principles of natural justice - HELD THAT - The Input Tax Credit (ITC) availed of by the petitioner was reversed on account of the disparity between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A. The petitioner has placed on record the annual return and learned counsel contended on such basis that the discrepancy is only to an extent of Rs.19,341/-. In these circumstances, albeit by putting the petitioner on terms, it is just and necessary to provide an opportunity to the petitioner to contest the tax demand on merits. The impugned order dated 15.09.2023 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 period of two weeks from the date of receipt of a copy of this order - Petition disposed off by way of remand.

Summary

The High Court of Madras set aside the order dated 15.09.2023 challenged by the petitioner for lack of opportunity to contest a tax demand. The petitioner, engaged in plastic trading, claimed a discrepancy of Rs.19,341 in GST returns. The court remanded the matter for reconsideration, with the condition of remitting 10% of the disputed tax demand within two weeks. The 1st respondent must provide a reasonable opportunity, including a personal hearing, and issue a fresh order within three months. The writ petition was disposed of without costs.