2024 (10) TMI 1504 - HC - GST

Challenge to assessment order - alleged mismatch between the GSTR-3B and GSTR-2A returns as also between the GSTR-3B and GSTR-1 returns - petitioner was unaware of the initiation of proceedings by issuing a notice in Form ASMT-10 followed by the intimation and show cause notice since such notices were uploaded on the view additional notices and orders tab of the GST portal - violation of principles of natural justice - HELD THAT - As a registered person, the petitioner is under an obligation to monitor the GST portal continually. Therefore, the explanation that the petitioner was completely unaware of proceedings is not convincing. At the same time, it is noticeable that the confirmed demand relates to discrepancy between the GSTR-3B and GSTR-2A returns. The GST Department issued multiple circulars to deal with this issue, since it is a recurrent issue. Therefore, in my view, the petitioner should be provided an opportunity to contest the tax demand, albeit by putting the petitioner on terms. The impugned assessment order is quashed subject to the condition that the petitioner remits 10% of the disputed tax demand with in a period of two weeks from the date of receipt of a copy of this order. The petitioner is also permitted to submit a reply to the show cause notice with in the aforementioned period - Petition disposed off.

Summary

The High Court of Madras quashed the assessment order subject to the condition that the petitioner remits 10% of the disputed tax demand within two weeks. The petitioner can submit a reply to the show cause notice within that period. The assessing officer must provide a reasonable opportunity, including a personal hearing, and issue a fresh assessment order within two months.