2024 (9) TMI 387 - HC - GST

Violation of principles of natural justice - petitioner was not provided a reasonable opportunity to contest the tax demand on merits - SCN and order were uploaded on the GST portal and not communicated to the petitioner through any other mode - HELD THAT - The confirmed tax proposal pertains to mismatch between the petitioner's GSTR 3B returns and the GSTR 1 statement. Penalty of 100% has been imposed without hearing the petitioner because the petitioner did not respond to the show cause. In view of the petitioner's assertion that he was unaware of proceedings, the interest of justice warrants that the petitioner be provided a reasonable opportunity to contest the tax demand by putting the petitioner on terms. On instructions, learned counsel for the petitioner agrees to remit an additional 5% of the disputed tax demand as a condition for remand. The impugned order dated 14.07.2023 is set aside on condition that the petitioner remits 5% of the disputed tax demand in addition to the 10% remitted earlier. Such remittance shall be made within 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 original tax order due to lack of opportunity for the petitioner to contest. The petitioner must remit 5% additional tax within two weeks for a fresh hearing and order within three months. Case closed with no costs.