2024 (10) TMI 436 - HC - GST

Violation of principles of natural justice - failure to take advantage of the show cause notices issued by the respondent before the impugned orders were passed - time limitation - HELD THAT - The petitioner can be given an opportunity to ventilate his grievance before the respondent on terms. Therefore, the petitioner shall deposit 25% disputed tax confirmed by the impugned order from Electronic Cash Ledger within a period of thirty (30) days from the date of receipt of copy of this order. The impugned order, dated 14.10.2023 passed by the respondent is quashed and the case is remitted back to the respondent to pass a fresh order on merits. The impugned order which stands quashed shall be treated as Addendum to the Show Cause Notice in DRC 01A, dated 06.04.2022 and DRC 01, dated 20.07.2023. The petitioner shall file a consolidated reply within a period of 30 days from the date of receipt of copy of this order. The respondent shall thereafter proceed to pass a final order on merits and in accordance with law, as expeditiously as possible, preferably, within a period of three (3) months from the date of reply to be filed by the petitioner. Petition allowed.

Summary

The petitioner challenged an order by the respondent confirming a tax demand for the assessment year 2017-18. The petitioner failed to take advantage of show cause notices issued before the impugned orders were passed. The High Court allowed the writ petition, quashed the impugned order, and remitted the case back to the respondent for a fresh order on merits. The petitioner must deposit 25% disputed tax within 30 days. The respondent must pass a final order within 3 months from the date of the petitioner's reply. If the petitioner fails to comply, the respondent can proceed against them.