2024 (9) TMI 891 - HC - GST

Violation of principles of natural justice - petitioner was unaware of proceedings culminating in the impugned order until his bank, Standard Chartered Bank, informed him about the order - discrepancy between the GSTR 3B and GSTR 1 returns - HELD THAT - It appears that the tax liability pertains to the discrepancy between the GSTR 3B and GSTR 1 returns. It is also evident that the tax proposal was confirmed without the participation of the petitioner. At this juncture, the entire tax liability has been realised by appropriating the amount from the petitioner's bank account. As such, revenue interest stands fully secured. In these circumstances, it is just and appropriate that an opportunity be provided petitioner to contest the tax demand on merits. The impugned order dated 06.10.2023 is set aside and the matter is remanded for reconsideration - Petition disposed off by way of remand.

Summary

The High Court of Madras set aside the order dated 06.10.2023 in a writ petition where the petitioner's bank account was attached without his knowledge due to a tax liability discrepancy. The matter is remanded for reconsideration, allowing the petitioner to contest the tax demand. The petitioner must reply within two weeks, and a fresh order must be issued within three months after a personal hearing. Amounts taken from the petitioner's bank account will depend on the outcome of the new proceedings. The writ petition is disposed of without costs.