2024 (10) TMI 1522 - HC - GST

Challenge to assessment order - mismatch between the GSTR 3B returns and the auto-populated GSTR 2A returns - petitioner was not provided a reasonable opportunity to contest the tax demand - violation of principles of natural justice - HELD THAT - Undoubtedly, the petitioner was negligent in not monitoring the GST portal, in spite of being a registered person. In these circumstances, the impugned order calls for interference, albeit by putting the petitioner on terms. The impugned order dated 11.10.2023 is quashed and the matter is remanded for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to with in two weeks from the date of receipt of a copy of this order - Petition disposed off by way of remand.

Summary

The High Court of Madras quashed an assessment order challenged by a petitioner for lack of opportunity to contest the tax demand. The petitioner, engaged in manufacturing engineering components, was not aware of the proceedings as the notice was uploaded on the GST portal without communication. The court remanded the matter for reconsideration with a condition that the petitioner remits 10% of the disputed tax demand within two weeks. The respondent is directed to provide a reasonable opportunity, including a personal hearing, and issue a fresh order within two months. The bank attachment is to be lifted as a result of the assessment order being quashed. The Writ Petition was disposed of with no costs.