2024 (9) TMI 990 - HC - GST

Violation of principles of natural justice - petitioner was not provided a reasonable opportunity to contest the tax demand on merits - petitioner asserts that he was unaware of proceedings culminating in the impugned order since the notices and order were uploaded on the GST portal but not communicated to the petitioner through any other mode - discrepancy between the petitioner's GSTR-3B returns - HELD THAT - On perusal of the impugned order, it appears that the confirmed tax proposal pertains to wrongful availment of ITC. It is also evident that the tax proposal was confirmed because the petitioner did not reply to the show cause notice or attend the personal hearing. In these circumstances, the interest of justice warrants that an opportunity be provided to the petitioner after putting the petitioner on terms. The impugned order dated 20.10.2023 is set aside and the matter is remanded for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand with in two weeks from the date of receipt of a copy of this order - Petition is disposed off.

Summary

The High Court set aside the order dated 20.10.2023 and remanded the matter for reconsideration. The petitioner must remit 10% of the disputed tax demand within two weeks and reply to the show cause notice. The respondent must provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh order within three months. Case disposed of with no costs.