2024 (9) TMI 1148 - HC - GST

Challenge to assessment order - petitioner did not have a reasonable opportunity to contest the tax demand - discrepancies between the petitioner's GSTR 3B returns and the auto populated GSTR 2A - violation of principles of natural justice - HELD THAT - The petitioner asserts that the discrepancy occurred on account of the petitioner specifying the amount under the row relating to all other ITC instead of the row relating to import of goods . In paragraph 3 of the affidavit, the petitioner has set out details of amounts appropriated either from the attached bank account or from the electronic credit ledger. The relevant page from the electronic credit ledger has also been placed on record. When the above facts and circumstances are taken into account, it is just and necessary that the petitioner be provided an opportunity to contest the tax demand on merits. The impugned order is set a side and the matter is remanded for re-consideration. The petitioner is permitted to submit a reply to the show cause notice with in fifteen days from the date of receipt of a copy of this order - Petition disposed off.

Summary

The High Court of Madras set aside the assessment order dated 22.08.2023 due to lack of opportunity for the petitioner to contest the tax demand. The matter is remanded for re-consideration, allowing the petitioner to reply to the show cause notice within fifteen days. The respondent must provide a reasonable opportunity for the petitioner, including a personal hearing, and issue a fresh order within two months. All amounts appropriated towards the tax demand shall abide by the outcome of the remanded proceedings. Case W.P.No.8847 of 2024 is disposed of with no costs.