2024 (10) TMI 1214 - HC - GST

Violation of principles of natural justice - petitioner was not provided a reasonable opportunity to contest the tax demand on merits - mismatch between GSTR-3B and the auto-populated GSTR-2A - HELD THAT - On examining the impugned order, it is clear that the confirmed tax proposal pertains to mismatch between the GSTR-3B returns and the auto-populated GSTR-2A. Such tax proposal was confirmed because the petitioner did not reply to the show cause notice. Therefore, the interest of justice warrants that the petitioner be provided an opportunity to contest the tax demand on merits, albeit by putting the petitioner on terms. The impugned order dated 07.07.2023 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 with in two weeks from the date of receipt of a copy of this order. Within the aforesaid period, the petitioner is permitted to send a detailed reply to the show cause notice by enclosing all the relevant documents - Petition disposed off.

Summary

The High Court of Madras set aside the order dated 07.07.2023 challenged by the petitioner due to lack of opportunity to contest tax demand. The petitioner claimed unawareness of proceedings as notices were uploaded on GST portal only. The court remanded the matter for reconsideration, with petitioner agreeing to remit 10% of disputed tax demand. The respondent was directed to provide a reasonable opportunity for the petitioner to contest the tax demand on merits. The garnishee order was also set aside. The writ petition was disposed of with no costs.