2024 (10) TMI 1215 - HC - GST

Breach of principles of natural justice - cancellation of petitioner's GST registration without proper opportunity to contest the tax demand - HELD THAT - On examining the impugned order, it is evident that the tax proposal pertains to a comparison of the taxable supplies reported in the GSTR-3B returns of the petitioner and Form 26AS as well as the annual return. The impugned order records that the tax proposal is confirmed as the petitioner did not lodge objections. By taking into account the fact that the GST registration was cancelled and also the fact that the petitioner was not heard before the order was issued, it is just and appropriate to provide an opportunity to the petitioner to contest the tax demand on merits by putting the petitioner on terms. The impugned order dated 30.10.2023 is set aside and the matter is remanded for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to with in a period of two weeks from the date of receipt of a copy of this order - Petition disposed off by way of remand.

Summary

The High Court of Madras set aside the order dated 30.10.2023 due to breach of natural justice principles. The petitioner's GST registration was cancelled without proper opportunity to contest the tax demand. The matter is remanded for reconsideration with the condition that the petitioner remits 10% of the disputed tax demand. The respondent must provide a reasonable opportunity for the petitioner to contest the tax demand within three months. The bank attachment is lifted. No costs are awarded.