2024 (9) TMI 814 - HC - GST

Breach of principles of natural justice - non-service of order/SCN - petitioner was unaware of proceedings culminating in the impugned order until the petitioner was informed that his bank account was frozen - tax proposea owing to reversal of Input Tax Credit on account of belated filing of returns - HELD THAT - On perusal of the impugned order, it is evident that such order confirmed the tax proposal only on the ground that the petitioner filed the returns belatedly. Such finding was recorded because the petitioner did not reply to the show cause notice or attend the personal hearing. In these circumstances, albeit by putting the petitioner on terms, it is just and necessary to provide the petitioner with an opportunity to contest the disputed tax demand on merits. The impugned order dated 10.10.2023 is set aside and the matter is remanded to the respondent concerned for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand 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 the impugned order dated 10.10.2023 due to a breach of natural justice principles. The petitioner was unaware of the proceedings leading to the order until their bank account was frozen. The matter is remanded to the respondent for reconsideration with the condition that the petitioner remits 10% of the disputed tax demand. The petitioner can reply to the show cause notice within two weeks. The respondent must provide a reasonable opportunity for the petitioner to contest the tax demand and issue a fresh order within three months. The bank attachment is lifted. Case disposed with no costs.