2024 (9) TMI 981 - HC - GST

Breach of principles of natural justice - Non-service of SCN - petitioner was unaware of proceedings - petitioner is willing to remit 10% of the disputed tax demand as a condition for remand - HELD THAT - On examining the impugned order, it is evident that the order pertains to reconciliation of turnover as per the Income Tax return and GSTR 3B return. It is also clear that the tax proposal was confirmed because the petitioner did not reply to the show cause notice. In these circumstances, albeit by putting the petitioner on terms, it is just and necessary that the petitioner be provided an opportunity to contest the tax demand on merits. The impugned order dated 25.09.2023 is set aside on condition that the petitioner remits 10% of the disputed tax demand within two weeks from the date of receipt of a copy of this order. Within the aforesaid period, the petitioner is directed to submit a reply to the show cause notice - petition disposed off.

Summary

The petitioner challenged an order for tax demand discrepancy. The court set aside the order, directing the petitioner to remit 10% of the disputed tax demand and submit a reply within two weeks. The respondent must then provide an opportunity for the petitioner to contest the tax demand and issue a fresh order within two months. Case disposed of with no costs.