2024 (9) TMI 1465 - HC - GST

Violation of principles of natural justice - petitioner did not have a reasonable opportunity to contest the tax demand on merits - difference between the purchase value, as reflected in the auto-populated GSTR 2A, and the purported outward supply value as per the petitioner's GSTR 3B returns - HELD THAT - It is clear that tax liability was imposed on the difference between the purchase value, as reflected in the auto-populated GSTR 2A, and the purported outward supply value as per the petitioner's GSTR 3B returns. The petitioner asserts that the outward supply value was more than Rs.6 crores and not Rs.1.2 crore. Given that liability was imposed on deemed sales basis without the petitioner being heard, it is just and necessary to provide an opportunity to the petitioner to contest the tax demand on merits by putting the petitioner on terms. The impugned order dated 10.11.2023 is set aside on condition that the petitioner remits 10% of the disputed tax demand as agreed to within a period of two weeks from the date of receipt of a copy of this order. The petitioner is permitted to submit a reply to the show cause notice with in the aforesaid period - Petition disposed off.

Summary

The High Court of Madras set aside the order dated 10.11.2023 concerning a tax demand dispute, as the petitioner was not given a reasonable opportunity to contest. The petitioner must remit 10% of the disputed tax demand within two weeks and can submit a reply to the show cause notice. The respondent must then provide a reasonable opportunity for the petitioner to be heard and issue a fresh order within three months from receiving the reply. The writ petition is disposed of without costs.