2024 (11) TMI 903 - HC - GST

Challenge to order regarding tax demand based on defects highlighted by Audit Department for assessment year 2017-18 - mismatch between GSTR-3B and GSTR-2A leading to tax demand - lack of personal hearing before passing orders by the respondent - HELD THAT - A perusal of the impugned order, dated 30.12.2023 would reveal that the respondent has once again confirmed the very same demand which was already demanded vide order dated 19.12.2023 on the similar defect, which is nothing but overlapping the earlier issue and it was the subject matter of W.P.No.7855 of 2023, which was disposed of by this and remanded the matter for fresh consideration while setting aside the earlier impugned assessment order dated 19.12.2023. This Court is inclined to set aside the present impugned assessment order dated 30.12.2023 and remanded the matter for reconsideration. The respondent is directed to reconsider this matter and pass orders afresh after affording an opportunity of personal hearing to the petitioner. Petition disposed off.

Issues:
1. Challenge to impugned order dated 30.12.2023 regarding tax demand based on defects highlighted by Audit Department for assessment year 2017-18.
2. Allegation of mismatch between GSTR-3B and GSTR-2A leading to tax demand.
3. Lack of personal hearing before passing orders by the respondent.
4. Petitioner's contention of duplication of demand and impermissibility of raising the same issue again.
5. Request for setting aside the impugned order and remanding the matter for reconsideration.

Detailed Analysis:
1. The Writ Petition challenged the impugned order dated 30.12.2023, which was based on objections raised by the Audit Department for the assessment year 2017-18. The respondent issued a show cause notice proposing tax demand for 17 defects, out of which 4 defects were confirmed in the order, including a mismatch between GSTR-3B and GSTR-2A, leading to a tax demand of Rs.24,95,172.42. The petitioner, after submitting a detailed reply, approached the Court as no personal hearing was provided before passing the order.

2. Subsequently, the Court set aside the earlier order and remanded the matter for fresh consideration after granting a personal hearing to the petitioner. However, the respondent issued a fresh show cause notice alleging the same mismatch between GSTR-3 and GSTR-2A, demanding the same tax amount. The petitioner responded by explaining the credit of ITC was correctly taken, reconciling the figures between the two forms.

3. Despite the petitioner's explanation, the respondent passed the impugned order on 30.12.2023, confirming the tax demand along with interest and penalty. The petitioner contended that the demand was a duplication of the earlier demand, which was impermissible. The respondent argued that the issues were already considered in the earlier assessment order, which was set aside by the Court, and thus requested the matter to be remanded for reconsideration.

4. The Court noted that the impugned order confirmed the same demand previously raised and set aside by the Court, indicating an overlap of issues. Consequently, the Court set aside the impugned order dated 30.12.2023 and remanded the matter for reconsideration, directing the respondent to pass fresh orders after providing a personal hearing to the petitioner. The Writ Petition was disposed of with this direction, and no costs were awarded.

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