2024 (6) TMI 1081 - HC - GST

Violation of principles of natural justice - unreasoned impugned order - discrepancies in the returns filed by the petitioner and replied - HELD THAT - On perusal of the impugned order, it is evident that no reasons are specified therein. As contended by learned counsel for the petitioner, the tax demand under the impugned order exceeds the amount specified in the show cause notice. In these circumstances, the impugned order cannot be sustained. The impugned order is set aside by leaving it open to the respondent to initiate fresh proceedings in accordance with law - petition allowed.

Summary

Issues: Challenge to order in original dated 10.10.2023 regarding tax discrepancies.

Analysis:
1. The petitioner received a notice dated 22.06.2023 highlighting discrepancies in the returns filed and responded on 11.04.2023. Subsequently, a show cause notice was issued leading to the impugned order dated 10.10.2023.

2. The petitioner's counsel argued that the impugned order lacked reasoning, pointing out a significant disparity in the tax demand between the show cause notice and the confirmed tax proposal under the impugned order.

3. The respondent's counsel acknowledged the petitioner's delayed approach to the court.

4. Upon review, it was observed that the impugned order did not provide any specific reasons. The tax demand in the order exceeded the amount mentioned in the show cause notice, rendering the order unsustainable.

5. Consequently, the High Court set aside the impugned order dated 10.10.2023, allowing the respondent to commence fresh proceedings in compliance with the law. The writ petition was granted without any costs, leading to the closure of related motions.

This judgment primarily revolves around the lack of reasoning in the impugned tax order, coupled with a substantial difference in the tax demand specified in the show cause notice and the final order. The court emphasized the importance of providing adequate reasons in orders and ensuring consistency in the tax demands communicated to the concerned parties. The decision to set aside the order and permit fresh proceedings underscores the significance of procedural fairness and adherence to legal requirements in tax matters.