2024 (8) TMI 1254 - HC - GST

Violation of principles of natural justice - petitioner did not have a reasonable opportunity to contest the tax demand on merits - petitioner asserts that he was unaware of proceedings until recently because the consultant who was entrusted with GST compliances did not inform the petitioner about these proceedings - mismatch between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A - HELD THAT - On perusal of the impugned order, it is evident that the tax proposal was confirmed because the petitioner failed to reply to the show cause notice. By taking into account the assertion that such non participation was on account of not being aware of proceedings, the interest of justice warrants reconsideration, albeit by putting the petitioner on terms. The impugned order dated 24.08.2023 is set aside 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. The petitioner is permitted to submit a reply to the show cause notice within the aforesaid period. Petition disposed off.

Summary

The High Court of Madras set aside the tax proposal order due to lack of opportunity for the petitioner to contest, requiring 10% of disputed tax to be remitted for reconsideration. The respondent must provide a reasonable opportunity for the petitioner to reply and issue a fresh order within three months. The writ petition is disposed of without costs.