2024 (10) TMI 1597 - HC - GST

Challenge to assessment order - petitioner was not provided a reasonable opportunity to contest the tax demand - violation of principles of natural justice - Petitioner also remitted 10% of the disputed tax demand - HELD THAT - The petitioner averred in the affidavit that he carried on trade of electrical goods on a small scale and that his consultant had not brought to his knowledge the initiation of proceedings against him. While this explanation is not wholly convincing since the petitioner is under an obligation to monitor the GST portal on an on going basis, it should not be lost sight of that the tax demand was confirmed without the petitioner being heard. The petitioner has also remitted 10% of the disputed tax demand. Solely for the purpose of providing the petitioner with an opportunity to contest the tax demand, the impugned order is set aside on condition that the receipt of 10% of the disputed tax demand be verified before re-assessment is undertaken - petition disposed off.

Summary

The High Court of Madras set aside an assessment order challenged by a petitioner engaged in the trade of electrical goods, citing lack of opportunity to contest the tax demand. The petitioner, who operates on a small scale and lacks computer proficiency, remitted 10% of the disputed tax demand. The court directed a re-assessment, conditional on verifying the payment and providing the petitioner a chance to respond to the show cause notice within fifteen days. The respondent must then offer a reasonable opportunity for a personal hearing before issuing a fresh order within two months. Case W.P.No.8470 of 2024 was disposed of with no costs.