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.