2024 (9) TMI 431 - HC - GST

Violation of principles of natural justice - petitioner was not provided a reasonable opportunity to contest the tax demand on merits - petitioner was unaware of proceedings culminating in the impugned order because GST compliances were entrusted to an Accountant who abruptly left the services of the company - mismatch between the GSTR 3B returns of the petitioner and the auto populated GSTR 2A - HELD THAT - The tax proposal pertains to the mismatch between the GSTR 3B returns of the petitioner and the auto populated GSTR 2A. It is also clear that the tax proposal was confirmed because the petitioner did not respond to the show cause notice. In these facts and circumstances, especially by taking into account the fact that the petitioner could not participate in proceedings because the petitioner was unaware of the same, the interest of justice warrants that the petitioner be provided an opportunity albeit by putting the petitioner on terms. The impugned order dated 16.06.2023 is set aside subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to with in a maximum period of two weeks from the date of receipt of a copy of this order. With in the aforementioned period, the petitioner is also permitted to submit a reply to the show cause notice. Petition disposed off.

Summary

The High Court judgment set aside the original tax demand order due to lack of opportunity for the petitioner to contest. The petitioner must remit 10% of disputed tax demand within two weeks and submit a reply to show cause notice. The respondent must then provide a reasonable opportunity for the petitioner, including a personal hearing, and issue a fresh assessment order within three months. Case disposed with no costs.