2024 (7) TMI 599 - HC - GST

Violation of principles of natural justice - respondent has passed the impugned order, without considering petitioner's explanation - purported discrepancy in the returns filed in GSTR 3B and GSTR 1 - HELD THAT - It is noticed that the impugned order merely records the notice in GST DRC-01 dated 29.09.2023 bearing Ref.No.ZD330923246551F and part of the reply of the petitioner. Operative portion of the order thereafter merely records that the objection of the petitioner was examined in detail and has confirmed the demand. Clearly the impugned order is non speaking nature and is therefore liable to be set aside and is accordingly set aside. The case is remitted back to the respondent to pass a fresh order on merits and in accordance with law within a period of 3 months from the date of receipt of a copy of this order. It is made clear that the order to be passed in the remand proceeding shall be detail with proper reasonings. Petition allowed.

Summary

Issues involved:
Confirmation of demand in GST DRC-01A and GST DRC-01 without considering explanation provided by the petitioner, opposition based on availability of alternate remedy under Section 107 of the TNGST Act, 2017, non-speaking nature of the impugned order leading to setting aside and remitting the case back for a fresh order with proper reasoning.

Analysis:

1. Confirmation of demand without considering explanation:
The respondent confirmed the demand proposed in GST DRC-01A and GST DRC-01 against the petitioner, despite the petitioner explaining the discrepancy in the returns filed in GSTR 3B and GSTR 1. The court noted that the impugned order did not consider the petitioner's explanation, leading to the conclusion that the order was non-speaking in nature. As a result, the court set aside the order and remitted the case back to the respondent for a fresh order with proper reasoning within three months.

2. Opposition based on alternate remedy under Section 107 of the TNGST Act, 2017:
The learned Additional Government Pleader opposed the Writ Petition on the grounds that the petitioner had an alternate remedy available under Section 107 of the TNGST Act, 2017, and should have pursued that remedy before the Appellate Commissioner. However, the court did not find this argument compelling and proceeded to analyze the case based on the merits presented before it.

3. Non-speaking nature of the impugned order and setting aside:
The court observed that the impugned order merely recorded the notice and part of the petitioner's reply without providing detailed reasoning for confirming the demand. This lack of proper explanation rendered the order non-speaking in nature, leading to its setting aside. The court emphasized the importance of detailed reasoning in such orders and directed the respondent to pass a fresh order with proper reasonings within a specified timeframe.

In conclusion, the Writ Petition was allowed, and no costs were imposed. The court's decision to set aside the non-speaking order and remit the case back for a fresh order with proper reasoning highlights the significance of providing detailed justifications in legal judgments, especially in matters concerning tax demands and explanations provided by the parties involved.