2024 (8) TMI 1449 - HC - GST

Violation of principles of natural justice - sufficient opportunity to the petitioner to substantiate their claim - Wrongful availment of input tax credit on the purchase of motor vehicles as reflected from the statement in GSTR-2A - availment of wrongful input tax credit in the corresponding month of GSTR- 3B, which is in violation of section 17(5) of the TNGST Act 2017 / CGST Act 2017 - HELD THAT - Admittedly, the respondent passed the order dated 17.08.2023, without providing reasonable opportunity to the petitioner to put forth their case and hence, the same is in violation of the principles of natural justice. According to the petitioner, the reason for not submitting their objections to the notice is that they were unaware of the notice issued through the GST Portal, and that, they would be able to establish their case if an opportunity is provided. It is also to be noted that the appeal filed by the petitioner as against the order impugned herein, was dismissed on 25.04.2024 solely on the ground that there is no provision under the Act to condone the delay. Considering the facts and circumstances of the case and having regard to the submissions made by the learned counsel on either side, this court, in the interest of justice, is inclined to condone the delay in filing the appeal by the petitioner before the Appellate Authority and is accordingly, condoned. Petition disposed off.

Summary

Issues:
1. Quashing of orders dated 17.08.2023 and 25.04.2024 and seeking a personal hearing opportunity.
2. Alleged wrongful availing of input tax credit on the purchase of motor vehicles.
3. Violation of principles of natural justice due to lack of opportunity to substantiate the claim.
4. Dismissal of appeal by the Appellate Authority based on delay grounds.
5. Condonation of delay in filing the appeal and direction for a fresh hearing.

Analysis:
The petitioner, a registered dealer under the Tamil Nadu Goods and Services Tax Act engaged in textile manufacturing, challenged orders alleging wrongful input tax credit on motor vehicle purchases. The respondent confirmed the proposal, leading to an appeal dismissed by the Appellate Authority due to delay. The petitioner contended a lack of opportunity to present objections timely, violating natural justice principles. The court noted the absence of a reasonable chance for the petitioner to state their case and the dismissal of the appeal solely on delay grounds, prompting a decision to condone the delay in the interest of justice.

The court acknowledged the violation of natural justice principles in passing the order without allowing the petitioner to present their case adequately. The petitioner's inability to file objections promptly due to unawareness of the notice issued through the GST Portal was considered. The court emphasized the need for a fair opportunity for the petitioner to establish their case, leading to the decision to condone the delay in filing the appeal and direct the Appellate Authority to consider the appeal without limitation issues and decide it on merit after providing a reasonable hearing opportunity.

In conclusion, the court disposed of the writ petition by granting relief to the petitioner, emphasizing the importance of affording a fair chance to be heard and ensuring that the appeal process is conducted without constraints of delay. The decision to condone the delay and direct a fresh hearing without limitation issues reflects the court's commitment to upholding principles of natural justice and ensuring a just resolution in tax matters.