2024 (10) TMI 665 - HC - GST

Principles of natural justice - petitioner seeks one opportunity to explain the case - mismatch between the Return in GSTR 1 and GSTR 3B - HELD THAT - This Court is of the view that the petitioner may have a case on merits and therefore, discretion is exercised partly in favour of the petitioner by quashing the impugned order and remitting the case back to the first respondent to pass a fresh order on merits, subject to the petitioner depositing 25% of disputed tax to the credit of the first respondent from its Electronic Cash Register within a period of 30 days from the date of receipt of this order. The impugned order, which stands quashed, shall be treated as addendum to the show cause notices that preceded the impugned order - Subject to the petitioner depositing the amount, the petitioner's Bank Account shall be de-freezed or in alternative the aforesaid amount shall be recovered as pre-deposit from the petitioner's Bank Account - Petition disposed off by way of remand.

Summary

The petitioner challenged an order by the first respondent for the assessment year 2017-18. The High Court quashed the impugned order and remitted the case back to the first respondent for a fresh order on merits, with the petitioner required to deposit 25% of disputed tax within 30 days. The impugned order was treated as an addendum to show cause notices. The petitioner must reply within 30 days and the first respondent must pass a fresh order within two months, with the petitioner being heard. The petitioner's bank account will be de-frozen upon deposit or the amount will be recovered. The writ petition was disposed of with no costs.