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2024 (7) TMI 806 - HC - GSTViolation of principles of natural justice - non-service of SCN - consultant did not know about the proceedings because the show cause notice and other communications were uploaded in the View Additional Notices and Orders tab on the GST portal - HELD THAT - It is evident that the case relates to a mismatch between the petitioner's GSTR returns and those filed by tax deductors/service recipients in Form GSTR 7. Such tax proposal was confirmed because the tax payer failed to reply to the show cause notice. By taking into account the assertion that non participation was on account of not being aware of proceedings, the interest of justice warrants that the petitioner be provided an opportunity to contest the tax proposal on merits by putting the petitioner on terms. It should be noticed that the petitioner had remitted 10% while presenting the statutory appeal. The petitioner has also agreed to remit an additional 5%. Petition is disposed of by moulding the relief and setting aside the order in original dated 12.11.2023 subject to the condition that the petitioner remits an additional 5% of the disputed tax demand within 15 days from the date of receipt of a copy of this order.
Issues:
Challenge to appellate order, Ex parte assessment, Principles of natural justice, Opportunity to contest tax proposal, Moulding the relief. Challenge to Appellate Order: The petitioner challenged an appellate order dated 30.05.2024 and sought a direction for the 1st respondent to dispose of the appeal on merits after providing a reasonable opportunity. The petitioner's appeal was rejected for being filed beyond the condonable period. The petitioner argued that GST compliances were handled by a consultant who was unaware of the proceedings due to notices being uploaded on the GST portal. The petitioner agreed to remit an additional 5% of the disputed tax demand. Ex Parte Assessment: The order of assessment dated 12.11.2023 was issued ex parte, with the petitioner claiming they were not heard before the order was issued. The petitioner presented a statutory appeal after becoming aware of the order in April 2024. The Special Government Pleader contended that the order was issued in compliance with principles of natural justice by providing various notices. Principles of Natural Justice: The petitioner argued that they were not heard before the original order was issued, emphasizing the need for an opportunity to contest the matter on merits before the original or appellate authority. The court noted that the case involved a mismatch in GSTR returns and tax deductors' filings, leading to a confirmed tax proposal due to non-reply to the show cause notice. The court found that justice required providing the petitioner an opportunity to contest the tax proposal by remitting an additional 5% of the disputed tax demand. Opportunity to Contest Tax Proposal: Considering the circumstances, the court disposed of the petition by setting aside the original order subject to the condition of remitting an additional 5% of the disputed tax demand within 15 days. The petitioner was allowed to reply to the show cause notice within the specified period. Once 15% of the disputed tax demand was received, the 2nd respondent was directed to provide a reasonable opportunity, including a personal hearing, and issue a fresh order within three months. Moulding the Relief: The court molded the relief by directing the remittance of an additional 5% of the disputed tax demand, allowing the petitioner to reply to the show cause notice, and ensuring a reasonable opportunity for contesting the tax proposal. The judgment aimed to balance the interests of justice by providing the petitioner with a fair chance to present their case and contest the tax demand on merits.
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