2024 (10) TMI 1225 - 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 examining the impugned order, it is evident that the tax proposal was arrived at on best judgment basis because the petitioner did not respond to the notice or appear at the personal hearing. Since the petitioner was not heard before the order was issued and the petitioner asserts that he was unaware of proceedings, the interest of justice warrants reconsideration albeit by putting the petitioner on terms. The impugned order dated 15.12.2022 is set aside on condition that the petitioner remits 10% of the disputed tax demand within two weeks from the date of receipt of a copy of this order. With in such period, the petitioner is permitted to reply to the notice - Petition disposed off.

Summary

The High Court of Madras set aside the original tax order due to lack of opportunity for the petitioner to contest, and ordered a reconsideration with the petitioner remitting 10% of the disputed tax demand. The petitioner must reply to the notice within two weeks and will then be given a personal hearing. The new order must be issued within three months from the receipt of the petitioner's reply. Case disposed without costs.