2024 (10) TMI 944 - HC - GST

Challenge to assessment order - it is submitted that the petitioner has not produced the requisite documents to substantiate that the petitioner had validly availed the Input Tax Credit - violation of principles of natural justice - HELD THAT - The Court is of the view that the impugned order suffers from the gross violation of the principles of natural justice as the petitioner was not put to notice on defect No.1. Therefore, the reasoning, which produced in conclusion of the impugned order, is also unsustainable, The Court is left with no other option, but to quash the impugned order and to remit the case back to the respondent to pass a fresh order on merits. The impugned order, which stands quashed, shall be treated as corrigendum to the notice in DRC 01 dated 19.04.2022. The respondent is also directed to issue fresh additional addendum to the above as a show cause notice with in a period of 45 days from today. Petition allowed.

Summary

Issues:
Challenge to impugned order for assessment year 2018-19.

Analysis:
The petitioner challenged the impugned order dated 27.04.2024 passed by the respondent for the assessment year 2018-19. The respondent confirmed tax due from the petitioner along with interest and penalty. The petitioner contended that the demanded amount was not part of the notice issued earlier, and the respondent did not provide proper notice regarding the defect in the claim. The respondent argued that the petitioner failed to provide necessary documents to substantiate the Input Tax Credit claim.

The Court found that the impugned order violated the principles of natural justice as the petitioner was not properly notified of the defect in the claim. The Court noted the specific defect related to the Input Tax Credit claim and the conditions stipulated for claiming ITC in GSTR 3B. It was observed that the petitioner did not possess all the required documents and failed to comply with the eligibility provisions for ITC. Consequently, the excess claimed Input Tax Credit was ordered to be reversed.

The Court quashed the impugned order and directed the respondent to pass a fresh order on merits. The impugned order was treated as a corrigendum to the earlier notice, and the respondent was instructed to issue a fresh show cause notice within 45 days. The petitioner was given 30 days to respond, and the respondent was required to pass a fresh order expeditiously, preferably within two months, ensuring the petitioner's right to be heard.

In conclusion, the Writ Petition was allowed with the above directions, and no costs were awarded. The connected miscellaneous petitions were closed as a result of the judgment.