2024 (7) TMI 671 - HC - GST

Violation of principles of natural justice - mismatch between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A - HELD THAT - It is evident that at least the issue relating to a mismatch between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A is common to both proceedings. Solely on this ground, the impugned order calls for reconsideration. Learned counsel for the petitioner also contended that requisite certificates in terms of Circular No.183 are now available with the petitioner. Consequently, it is just and necessary to provide an opportunity to the petitioner. The impugned order dated 20.12.2023 is set aside and the matter is remanded to the respondent for reconsideration. After providing a reasonable opportunity to the petitioner, including a personal hearing, the respondent is directed to issue a fresh order within three months from the date of receipt of a copy of this order. Petition disposed off by way of remand.

Summary

Issues Involved:
Challenge to order dated 20.12.2023 in W.P.No.4966 of 2024, compliance with principles of natural justice, mismatch between GSTR 3B returns and GSTR 2A, availability of requisite certificates, setting aside the impugned order, remand for reconsideration, unblocking input tax credit.

Compliance with Principles of Natural Justice:
The petitioner challenged the order dated 20.12.2023 in W.P.No.4966 of 2024, citing that the show cause notice was issued on the same date as the audit report, raising concerns about the mismatch between GSTR 3B returns and auto-populated GSTR 2A. The petitioner argued that the issue had already been addressed under Section 74 proceedings and requested a reconsideration, mentioning the ability to prove the eligibility of Input Tax Credit (ITC) with the necessary certificates. The Additional Government Pleader contended that natural justice principles were followed, starting from the audit-based show cause notice on 29.09.2023, with subsequent opportunities for personal hearings and due consideration of the petitioner's response.

Mismatch Between GSTR 3B Returns and GSTR 2A:
A comparison of the impugned order dated 20.12.2023 with another challenged order dated 30.12.2023 in W.P.No.4974 of 2024 revealed a common issue regarding the mismatch between the petitioner's GSTR 3B returns and auto-populated GSTR 2A. This similarity prompted the need for reconsideration of the impugned order. The petitioner's counsel emphasized the availability of certificates as per Circular No.183, supporting the claim that only eligible ITC was availed. Consequently, the court set aside the impugned order and remanded the matter to the respondent for a fresh decision within three months, following a reasonable opportunity for the petitioner, including a personal hearing.

Unblocking Input Tax Credit:
In light of setting aside the impugned order, the court directed the respondent to take necessary steps to unblock the input tax credit of the petitioner in the electronic credit ledger. The writ petitions were disposed of based on these terms, with connected miscellaneous petitions closed and no costs imposed on any party involved in the proceedings.