2024 (9) TMI 491 - HC - GST

Principles of natural justice - petitioner was not provided a reasonable opportunity to contest the tax demand on merits - notice and the impugned order were uploaded in the View Additional Notices and Orders tab on the GST portal and not communicated to the petitioner through any other mode - mismatch between GSTR-3B and the auto-populated GSTR-2A - HELD THAT - On examining the impugned order, it is clear that the confirmed tax proposal pertains to mismatch between the GSTR-3B returns and the auto-populated GSTR-2A. Such tax proposal was confirmed because the petitioner did not reply to the show cause notice. Therefore, the interest of justice warrants that the petitioner be provided an opportunity to contest the tax demand on merits, albeit by putting the petitioner on terms. The impugned order dated 07.07.2023 is set aside and the matter is remanded for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within two weeks from the date of receipt of a copy of this order - Petition disposed off by way of remand.

Summary

The High Court of Madras set aside an order challenging tax demand due to lack of opportunity for the petitioner to contest. The petitioner was unaware of proceedings as notices were uploaded on GST portal only. The court remanded the matter for reconsideration with a condition to remit 10% of disputed tax demand. The petitioner must reply to show cause notice within two weeks. The respondent must provide a reasonable opportunity for a personal hearing and issue a fresh order within three months. The garnishee order was also set aside. The writ petition was disposed of with no costs.