2025 (1) TMI 1069 - HC - GST

Challenge to assessment order - violation of principles of natural justice - opportunity of hearing not provided - availing ineligible Input tax credit under GSTR TRAN-I - petitioner is ready and willing to pay 25% of the disputed tax and that he may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal - HELD THAT - The impugned order dated 22.12.2023 is set aside and the petitioner shall deposit 25% of the disputed tax within a period of four weeks from the date of receipt of a copy of this order. On complying with the above condition the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four 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

Summary of the Judgment:

In the case before the Madras High Court, presided over by Justice Mohammed Shaffiq, the petitioner challenged an impugned order dated 22.12.2023, issued under GSTIN:33AACPP7187P1Z0/2017-18, alleging a violation of the principles of natural justice. The petitioner, engaged in the business of retailing industrial hardware, contended that the order was not served properly, as it was merely uploaded on the GST Portal, leaving the petitioner unaware of the assessment.

The petitioner cited a recent judgment, M/s. K. Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise, where a similar matter was remanded subject to a 25% payment of disputed taxes. The petitioner expressed readiness to pay this amount to gain an opportunity to address the discrepancies.

The court set aside the impugned order, directing the petitioner to deposit 25% of the disputed tax within four weeks. Upon compliance, the order would serve as a show cause notice, allowing the petitioner to submit objections with supporting documents. The respondent must consider these objections and pass orders lawfully, providing a reasonable hearing opportunity. If the deposit or objections are not filed within the stipulated period, the impugned order will be restored. The court also ordered the lifting of bank account attachments following the deposit of the disputed tax. The writ petition was disposed of without costs, and connected miscellaneous petitions were closed.