2024 (10) TMI 1008 - HC - GST

Violation of principles of natural justice - petitioner did not have a reasonable opportunity to contest the tax demand on merits - HELD THAT - On perusal of the impugned order, it appears that the tax proposal was confirmed because the petitioner did not reply to the show cause notice. The petitioner asserts that such non-participation was on account of not being aware of proceedings. In these facts and circumstances, the interest of justice warrants reconsideration by putting the petitioner on terms. The impugned order dated 16.03.2023 is set aside on condition that the petitioner remits 10% of the disputed tax demand within three weeks from the date of receipt of a copy of this order. Within the said period, the petitioner is permitted to submit a reply to the show cause notice - Petition disposed off.

Summary

The High Court of Madras set aside the order dated 16.03.2023, directing the petitioner to remit 10% of the disputed tax demand within three weeks. The petitioner can submit a reply to the show cause notice, and upon satisfaction of the remittance, a reasonable opportunity, including a personal hearing, should be provided. A fresh order is to be issued within three months. Recovery proceedings are also set aside. Case disposed of with no costs.