2024 (8) TMI 1253 - HC - GST

Violation of principles of natural justice - order challenged on the ground that the petitioner did not have a reasonable opportunity to contest the tax demand on merits - HELD THAT - The petitioner has placed on record the electronic credit ledger, which shows reversal in May 2022. Such reversal is also reflected in the petitioner's GSTR 3B return for the month of May in the year 2022-2023. In these circumstances, albeit by putting the petitioner on terms, reconsideration is necessary. The impugned order dated 19.12.2023 is set aside and the matter is remanded for reconsideration on 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.

Summary

The High Court of Madras set aside the order dated 19.12.2023 and remanded the matter for reconsideration. The petitioner, a developer, claimed that it reversed Input Tax Credit (ITC) due to lack of awareness of proceedings. The petitioner agreed to remit 10% of the disputed tax demand for remand. The respondent provided opportunities for the petitioner to explain but reconsideration was deemed necessary. The petitioner must remit 10% of the disputed tax demand within two weeks and submit a reply to the show cause notice. The respondent must then provide a reasonable opportunity to the petitioner and issue a fresh order within three months. The writ petition was disposed of without costs.