2024 (10) TMI 1517 - HC - GST

Challenge to order-in-original - wrong availment of Input Tax Credit (ITC) - petitioner's reply was not taken into consideration - violation of principles of natural justice - HELD THAT - On examining the impugned order, it is evident that the respondent proceeded on the basis that the petitioner had reversed the ITC in the GSTR-9 return and that the GSTR-9 return was unavailable. On perusing the reply of the petitioner, there is no assertion therein that the ITC was reversed in the GSTR-9 return. Thus, there appears to be a disconnect between the reply and the findings recorded in the impugned order. Hence, the impugned order calls for interference. The impugned order dated 27.12.2023 is quashed subject to the petitioner paying 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. The petitioner is also permitted to submit a detailed reply to the show cause notice with in the aforesaid period by enclosing all relevant documents - Petition disposed off.

Summary

The High Court of Madras quashed the order dated 27.12.2023 as the petitioner's reply was not considered. The petitioner, a registered person under GST enactments, was asked to show cause for wrong ITC availment. The court directed the petitioner to pay 10% of disputed tax demand and submit a detailed reply with relevant documents within two weeks. The assessing officer must then provide a reasonable opportunity for a fresh order within two months. Case W.P.No.7545 of 2024 is disposed of with no costs.