2024 (10) TMI 1596 - HC - GST

Violation of principles of natural justice - petitioner was not aware of the impugned order until receipt of an urgent notice dated 23.02.2024 by post - no Input Tax Credit (ITC) was claimed in respect of the purchase of the car since such purchase was not related to the petitioner's business - HELD THAT - The record shows that the petitioner did not reply to the show cause notice or participate in proceedings culminating in the impugned order. As a consequence, the petitioner was unable to contend and establish that no ITC was availed of in respect of the purchase of the BMW car - the petitioner submits that the petitioner agrees to remit 10% of the disputed tax demand as a condition for remand. Since the petitioner did not have a reasonable opportunity to contest the tax demand, the interest of justice warrants providing the petitioner with such opportunity, albeit by putting the petitioner on terms. The impugned order is quashed and the matter is remanded to the respondent for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to with in a period of 15 days 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 the impugned order and remanded the matter to the respondent for reconsideration. The petitioner must remit 10% of the disputed tax demand within 15 days and can submit a reply to the show cause notice within that period. The respondent must provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh order within two months from receiving the petitioner's reply. The writ petition was disposed of with no order as to costs.