2025 (2) TMI 1096 - HC - GST

Challenge to impugned order - non application of mind - violation of principles of natural justice - petitioner is ready and willing to pay 10% of the disputed tax and that they may be granted 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 orders dated 24.08.2024 07.12.2024 are set aside - Petition disposed off.

Summary

The present case involves writ petitions challenging orders passed by the respondents related to the assessment year 2019-20, alleging non-application of mind. The petitioner, a Civil Work Contractor registered under the GST Act 2017, filed returns and paid taxes during the relevant period. Discrepancies were found in the petitioner's monthly returns, particularly concerning GSTR 1 Vs. GSTR 7. The petitioner had already paid a portion of the disputed amount, leaving a balance to be settled.The petitioner cited a recent judgment by the Court in a similar case and expressed willingness to pay 10% of the disputed tax. Both parties agreed to the terms of settlement, leading to the following conclusions:1. The impugned orders were set aside.2. The petitioner was directed to deposit 10% of the disputed taxes within four weeks.3. Any amounts already paid or recovered would be adjusted against the 10% payment.4. Failure to comply within the stipulated period would result in restoration of the impugned order.5. Recovery actions like bank account attachment would be lifted upon compliance with the payment condition.6. Upon compliance, the impugned order would be treated as a show cause notice, allowing the petitioner to submit objections within four weeks.7. Costs were not awarded, and connected miscellaneous petitions were closed.The Court emphasized the importance of timely compliance with the payment condition and objection submission deadlines to avoid restoration of the original assessment orders.