2024 (10) TMI 1232 - HC - GST

Violation of principles of natural justice - petitioner did not have a reasonable opportunity to contest the tax demand on merits - inadvertent error while filing GSTR 3B returns - HELD THAT - On examining the impugned order, it is evident that the tax proposal related to non payment of RCM. By taking into account the assertion that such tax proposal arose out of an inadvertent error as also the assertion that the petitioner could not participate in proceedings because the petitioner was unaware of such proceedings, the interest of justice warrants re-consideration by putting the petitioner on terms. The impugned order dated 26.12.2023 is set aside on condition that the petitioner remits 10% of the disputed tax demand with in two weeks from the date of receipt of a copy of this order. With in 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 26.12.2023 in a writ petition where the petitioner claimed lack of opportunity to contest a tax demand. The petitioner agreed to remit 10% of the disputed tax demand for reconsideration. The court directed the respondent to provide a reasonable opportunity to the petitioner and issue a fresh order within three months. The case was disposed of with no costs.