2024 (10) TMI 1516 - HC - GST

Challenge to assessment order - petitioner was not provided a reasonable opportunity to contest the service tax demand - violation of principles of natural justice - HELD THAT - The petitioner averred that the services of a consultant were availed of to handle service tax compliances and that she was unaware of proceedings culminating in the impugned order because she was not kept informed by such consultant. It also appears that the petitioner was running a beauty parlour. While the explanation of the petitioner is not totally convincing, it appears that the tax demand against a person carrying on business on a very small scale has been confirmed without such person having been heard. The impugned order is quashed and the matter is remanded for reconsideration subject to the petitioner remitting 20% of the 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 aforesaid period - Petition disposed off.

Summary

The High Court of Madras quashed an order due to lack of opportunity for the petitioner to contest a service tax demand. The petitioner, running a beauty parlour, claimed ignorance of proceedings as her consultant did not inform her. The court remanded the matter for reconsideration, requiring the petitioner to remit 20% of the tax demand and submit a reply to the show cause notice. The respondent must provide a reasonable opportunity for the petitioner, including a personal hearing, and issue a fresh order within two months. No costs were awarded, and the writ petition was disposed of.