2024 (9) TMI 433 - HC - GST

Principles of natural justice - order in original assailed on the ground that the petitioner did not have a reasonable opportunity to contest the tax demand on merits - mismatch between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A - HELD THAT - It is evident that the tax proposal was confirmed because the petitioner did not reply to the show cause notice or participate in the personal hearing pursuant to the two reminders issued by the respondent. Since the petitioner was not heard before such order was issued, the interest of justice warrants that the petitioner be provided an opportunity to contest the tax demand on merits by putting the petitioner on terms. The impugned order dated 15.12.2023 is set aside and the matter is remanded for reconsideration on condition that the petitioner remits 10% of the disputed tax demand as agreed to within a period of two weeks from the date of receipt of a copy of this order - Petition disposed off.

Summary

The High Court of Madras set aside the order dated 15.12.2023 and remanded the matter for reconsideration. The petitioner must remit 10% of the disputed tax demand within two weeks. The respondent must provide a reasonable opportunity for the petitioner to contest the tax demand on merits. The fresh order must be issued within three months from the date of the petitioner's reply. The writ petition is disposed of without costs.