2024 (10) TMI 198 - HC - GST

Challenge to impugned proceedings on the ground of being violation of principles of natural justice - discrepancies between GSTR-1 and GSTR-7 which were treated as suppression of outward tax supply - HELD THAT - The impugned order dated 19.06.2023 is set aside and the petitioner shall deposit 25% of the disputed tax within a period of two (2) weeks from the date of receipt of a copy of this order. On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. If the above deposit is not paid or the objections not filed within the stipulated period, i.e., two weeks and four weeks from the date of receipt of a copy of this order respectively, the impugned order of assessment shall stand revived. Petition disposed off.

Summary

The High Court of Madras set aside the order dated 19.06.2023 due to violation of natural justice principles. The petitioner, a work contractor registered under GST Act, faced discrepancies in returns leading to tax suppression allegations. Technical glitches in the GST portal hindered the petitioner's response to notices. The petitioner offered to pay 25% of disputed tax and requested a final opportunity to present objections. The court directed the petitioner to deposit 25% of disputed tax within two weeks and submit objections within four weeks. Failure to comply would revive the initial assessment order. The writ petition was disposed of with no costs.