2024 (9) TMI 799 - HC - GST

Violation of principles of natural justice - petitioner did not have a reasonable opportunity to contest the tax demand on merits - cancellation of GST registration with retrospective effect - HELD THAT - On perusal of show cause notice dated 30.09.2023, it is evident personal hearing was offered to the petitioner on 07.10.2023. The of cancellation of the petitioner's GST registration is on record. Such order is dated 31.05.2021. In those circumstances, the explanation of the petitioner that he was not monitoring the GST portal on an ongoing basis cannot be completely disregarded. In the overall facts and circumstances, albeit by putting the petitioner on terms, the interest of justice warrants that the petitioner be provided an opportunity to contest the tax demand on merits. The impugned order dated 31.10.2023 is set aside and the matter is remanded for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a period of three weeks from the date of receipt of a copy of this order - Petition disposed off by way of remand.

Summary

The High Court of Madras set aside the order dated 31.10.2023 challenged by the petitioner for lack of opportunity to contest tax demand. The petitioner, engaged in trading, claimed unawareness due to GST registration cancellation. The court found the petitioner's explanation reasonable and remanded the matter for reconsideration on the condition of remitting 10% of disputed tax demand within three weeks. The respondent must provide a reasonable opportunity, including a personal hearing, and issue a fresh order within three months of receiving the petitioner's reply. The writ petition was disposed of without costs.