2024 (9) TMI 902 - HC - GST

Violation of principles of natural justice - petitioner did not have reasonable opportunity to contest the tax demand - wrongful availment of ITC in respect of purchase of a motor vehicle - HELD THAT - On perusal of the impugned order, it is evident that the tax proposal pertains to wrongful availment of ITC in respect of purchase of a motor vehicle. Learned counsel for the petitioner contends that such purchase was for business purposes and ITC was not wrongly availed. The documents on record evidence that a sum of Rs.2 lakhs was appropriated towards the total tax liability of about Rs.4.28 lakhs. In these circumstances, it is just and necessary to provide an opportunity to the petitioner to contest the disputed tax demand on merits. The impugned order dated 11.10.2023 is set aside and the matter is remanded for reconsideration - Petition disposed off by way of remand.

Summary

The High Court of Madras set aside the original tax demand order due to lack of opportunity for the petitioner to contest. The case involves wrongful availment of Input Tax Credit for a motor vehicle purchase. The matter is remanded for reconsideration, and the petitioner is allowed to reply to the show cause notice. The bank attachment of Rs.2 lakhs is to abide by the outcome of the proceedings. The assessment order being set aside, the bank attachment is lifted. Case W.P.No.10744 of 2024 is disposed of with no costs.