2024 (9) TMI 816 - HC - GST

Violation of principles of natural justice - petitioner did not have a reasonable opportunity to contest the tax demand on merits - communications were only uploaded on the 'View Additional Notices and Order' tab of the GST portal and not communicated to the petitioner through any other mode - tax proposal pertains to discrepancy between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A - HELD THAT - On perusal of the impugned order, it is evident that the tax proposal pertains to a discrepancy between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A. It is also clear that the tax proposal was confirmed because the petitioner did not reply to the show cause notice. In the affidavit in support of the writ petition, it is asserted that the petitioner has obtained the requisite certificates to fulfil obligations under Circular No.183. In these circumstances, albeit by putting the petitioner on terms, it is just and appropriate that an opportunity be provided to the petitioner to contest the tax demand on merits. The impugned order dated 13.09.2023 is set aside on 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. Within the said period, the petitioner is also permitted to submit a reply to the show cause notice - Petition disposed off.

Summary

The High Court of Madras set aside the order dated 13.09.2023, allowing the petitioner to contest the tax demand by remitting 10% of the disputed tax demand within two weeks and submitting a reply to the show cause notice. The respondent must then provide a reasonable opportunity, including a personal hearing, and issue a fresh order within three months. Case W.P.No.11168 of 2024 is disposed of with no costs.