2025 (2) TMI 461 - HC - GST

Challenge to impugned order on the ground of principles of natural justice - Difference in ITC claim - mismatches between different forms - petitioner is ready and willing to pay 10% of the disputed tax and seeks one final opportunity before the adjudicating authority to put forth their objections - HELD THAT - The petitioner shall deposit 10% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent within a period of four weeks from the date of receipt of a copy of this order. The impugned order and the consequential demand order dated 24.08.2024 are set aside - Petition allowed.

Summary

The present writ petition challenges an order dated 24.08.2024 on the ground of principles of natural justice. The petitioner, a registered dealer under the Goods and Services Tax Act, had discrepancies noted during an audit authorized by the joint commissioner. The discrepancies included differences in input tax credit claims, mismatches between different forms, non-payment of taxes, treatment of credit notes and income, reversal of tax credits, and proposed ineligible tax credits. The impugned order dropped certain defects but confirmed others related to mismatches in forms, treatment of income, and tax credit reversal.The petitioner cited a previous judgment remanding a similar matter back to the adjudicating authority subject to payment of 10% of disputed taxes. The petitioner expressed readiness to pay the 10% disputed tax and requested an opportunity to present objections to the proposal, which the respondent did not oppose. Both parties consented to the following terms:a) Setting aside the impugned order and demand orderb) Depositing 10% of the disputed taxes within four weeksc) Adjusting any recovered/paid amounts from the 10% payment and depositing the remaining balanced) Completing the verification and payment process within four weekse) Failure to comply leading to restoration of the impugned orderf) Lifting any recovery actions upon compliance with the 10% paymentg) Treating the impugned order as a show cause notice upon compliance, allowing the petitioner to submit objections within four weeks, with the respondent passing orders after a hearing. Non-compliance would result in the restoration of the impugned order.The judgment concluded with no order as to costs and closure of connected miscellaneous petitions.