2024 (8) TMI 1034 - HC - GST

Challenge to impugned order regarding GST discrepancies - petitioner has failed to avail the opportunity of personal hearing - HELD THAT - In the present case, a notice was issued by the respondent based on the difference between the turn over reported in Form 26AS and Form GSTR 3B, for which the petitioner filed a reply stating that the said difference has occurred since the Form 26AS includes the turn over of three months, viz., April 2017 to June 2017, which is prior to the commencement of GST Regime, whereas, the turnover reported in Form GSTR3B will not include the said period. However, the said aspect was not considered by the respondent while passing the impugned order. Therefore, this Court believes that if one more opportunity is granted, the petitioner can establish his case before the Authorities concerned. In such view of the matter, this Court is inclined to set aside the impugned order dated 12.12.2023. The impugned order dated 12.12.2023 is set aside and the matter is remanded to the respondent for fresh consideration on condition that the petitioner shall pay 10% of demand amount to the respondent within a period of four weeks from today (12.08.2024) and the setting aside of the impugned order will take effect from the date of payment of the said amount - petition disposed off by way of remand.

Summary

Issues:
Challenging an impugned order dated 12.12.2023 passed by the respondent regarding GST discrepancies.

Analysis:
The petitioner challenged the impugned order dated 12.12.2023, which was issued based on differences between turnover reported in Form 26AS and Form GSTR 3B. The petitioner explained that the variation arose because Form 26AS included turnover from April 2017 to June 2017, predating the GST regime. Despite the petitioner's explanation, the respondent passed the impugned order without due consideration. The petitioner requested the court to set aside the order and grant another opportunity to present their case. The respondent argued that the petitioner failed to avail the opportunity of a personal hearing granted earlier. The court noted the discrepancy in turnover reporting and found merit in the petitioner's argument that the pre-GST turnover was included in Form 26AS. Consequently, the court decided to set aside the impugned order and remand the matter to the respondent for fresh consideration. The court directed the petitioner to pay 10% of the demand amount within four weeks and submit necessary documents within two weeks thereafter. The respondent was instructed to conduct a personal hearing, consider the petitioner's submissions, and pass appropriate orders promptly.

This judgment highlights the importance of considering all relevant factors before making decisions in tax matters. It emphasizes the need for authorities to thoroughly review explanations provided by taxpayers, especially when discrepancies arise due to transitional periods like the introduction of new tax regimes. The court's decision to set aside the order and provide the petitioner with another opportunity underscores the principles of natural justice and fair treatment in administrative proceedings. The directive to pay a percentage of the demand amount and submit necessary documents within specified timelines demonstrates the court's commitment to ensuring compliance while also safeguarding the petitioner's right to a fair hearing. Overall, the judgment reflects a balanced approach to resolving disputes related to tax assessments, promoting transparency and accountability in the process.