2024 (9) TMI 810 - HC - GST

Violation of principles of natural justice - denial of reasonable opportunity - non application of mind - tax demand owing to difference between Input Tax Credit (ITC) available as per the GSTR 2A and the ITC availed of under the petitioner's GSTR 3B returns - HELD THAT - On perusal of the impugned order, it appears that the ITC available in the auto-populated GSTR 2A exceeded the ITC availed of in the petitioner's GSTR 3B returns. Prima facie, in those circumstances, GST liability would arise only if there was sales suppression. Since the petitioner did not respond to the show cause notice, it appears that tax liability was imposed. As a registered person, the petitioner cannot be absolved of responsibility in this regard. On balance, albeit by putting the petitioner on terms, the impugned order calls for reconsideration. The impugned order dated 01.12.2023 is set aside and the matter is remanded for reconsideration on condition that the petitioner remits 10% of the disputed tax demand as agreed to with in a period of two weeks from the date of receipt of a copy of this order - Petition disposed off.

Summary

The High Court set aside the order dated 01.12.2023 and remanded the matter for reconsideration. The petitioner must remit 10% of the disputed tax demand within two weeks and submit a reply to the show cause notice with relevant documents. The respondent must provide a reasonable opportunity for a personal hearing and issue a fresh order within three months from receiving the petitioner's reply. The writ petition was disposed of without costs.