2024 (12) TMI 441 - HC - GST

Challenge to writ petition on the premise that it traverses beyond the Show Cause Notice thereby denying the petitioner's opportunity to put forth his case - Violation of principles of natural justice - discrepancies between GSTR-3B and GSTR-2A/GSTR-2B - HELD THAT - The respondents would submit that in view of the apparent discrepancies between the Show Cause Notice and the order of assessment, the petitioner may submit their response treating the impugned order as Show Cause Notice and submit its reply along with supporting materials within a period of two weeks. The impugned order is set aside and the same shall be treated as a Show Cause Notice. The petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner - Petition disposed off.

Summary

Issues:
Challenge to impugned order based on discrepancies in tax payment and notice, violation of opportunity to present case, and validity of assessment order.

Analysis:
The petitioner, engaged in works contract, challenged an order alleging short payment of taxes due to discrepancies in Input Tax Credit claims and differences between various GST return forms. The notice demanded tax payment, interest, and penalties based on the alleged discrepancies. The petitioner contended that the order exceeded the scope of the Show Cause Notice, denying the opportunity to present a defense. The respondents suggested the petitioner treat the order as a Show Cause Notice and respond accordingly.

The Court noted that the impugned order, passed after granting the petitioner multiple hearings, highlighted discrepancies between GSTR-3B and GSTR-2A/GSTR-2B, resulting in differential tax amounts. The petitioner argued that these discrepancies were not part of the original notice, citing Section 75(7) of the GST Act, which limits demands to the grounds specified in the notice. The petitioner sought to set aside the order on this basis.

In response, the respondents proposed that the petitioner treat the order as a Show Cause Notice and submit objections with supporting documents within two weeks. The Court set aside the impugned order, directing the petitioner to submit objections within four weeks. The respondent would then consider the objections and pass orders after providing a hearing. The Court also ordered the lifting of bank attachment initiated post the assessment order.

Consequently, the Writ Petition was disposed of with no costs awarded, and connected miscellaneous petitions were closed.