2024 (1) TMI 1108 - HC - GST

Violation of principles of natural justice - reasonable opportunity not provided to petitioner - Exemption from payment of GST - services provided in relation to hotel accommodation if the tariff is below Rs. 1,000/- - petitioner is an intermediary - HELD THAT - The non-consideration of the reply to the show cause notice certainly prejudices the petitioner and denies the petitioner a reasonable opportunity to establish its position. On that sole ground, the respective impugned order calls for interference. Accordingly, without expressing any opinion on the merits of the matter, the orders impugned herein are quashed. As a corollary, these matters are remanded for reconsideration by the assessing officer. Petition disposed off by way of remand.

Summary

Issues involved:
The issue involved in this case is whether the petitioner, an intermediary, is entitled to exemption from payment of GST in relation to services provided in connection with hotel accommodation if the tariff is below Rs. 1,000/-.

Judgment Details:

Issue 1: Consideration of Reply to Show Cause Notice
The respondent did not consider the reply dated 01.06.2023 to the show cause notice issued in Form DRC-01, which is crucial for the petitioner to establish its position. The non-consideration of this reply prejudiced the petitioner and denied them a reasonable opportunity. The Court held that the impugned orders are quashed on this sole ground, as it calls for interference due to the denial of a fair opportunity.

Issue 2: Remand for Reconsideration
The Court, without expressing any opinion on the merits of the matter, quashed the impugned orders and remanded the case for reconsideration by the assessing officer. The assessing officer is directed to provide a reasonable opportunity to the petitioner and consider their replies before issuing a reasoned order within four weeks from the receipt of the Court's order.

Final Decision:
The Writ Petitions are disposed of with no order as to costs. The connected Miscellaneous Petitions are closed as well.

In conclusion, the High Court of Madras held that the respondent's failure to consider the petitioner's reply to the show cause notice was prejudicial and denied the petitioner a fair opportunity. As a result, the impugned orders were quashed, and the case was remanded for reconsideration by the assessing officer.