2024 (9) TMI 1145 - HC - GST

Challenge to assessment order - violation of principles of natural justice - tax demand was confirmed because the petitioner failed to respond to either the intimation or the show cause notice - HELD THAT - On examining the orders impugned herein, it is clear that the petitioner failed to respond either to the intimation or to the show cause notice. A change in management does not justify the failure to respond to the show cause notice. On examining the impugned order, it is evident that discrepancies between the GSTR 3B, GSTR 1 and GSTR 9 returns was the basis for confirming the tax demand. The impugned order contains no reasons in support of the tax demand except the failure of the petitioner to reply to the show cause notice. In these circumstances, albeit by putting the petitioner on terms, it is just and appropriate to provide the petitioner an opportunity to contest the tax demand on merits. The orders impugned herein are quashed subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to under order dated 19.12.2023. Such remittance shall be made with in a maximum period of two weeks from the date of receipt of a copy of this order - Petition disposed off.

Summary

The High Court of Madras quashed orders related to the assessment period 2017-2018 due to a breach of natural justice principles. The petitioner, citing a change in management, claimed unawareness of the proceedings leading to the impugned orders. The tax demand was confirmed due to the petitioner's failure to respond to notices, without reasons recorded. The court allowed the petitioner to contest the tax demand by remitting 10% of the disputed amount within two weeks and submitting a reply to the show cause notice. The respondent was directed to provide a reasonable opportunity for a personal hearing and issue fresh orders within two months. The writ petitions were disposed of with no costs.