2024 (10) TMI 1220 - HC - GST

Violation of principles of natural justice - petitioner did not have a reasonable opportunity to contest the tax demand on merits - alleged mismatch between the petitioner's GSTR 3B returns and the auto populated GSTR 2A - HELD THAT - On examining the impugned order, it is evident that the tax proposal pertains to a mismatch between the petitioner's GSTR 3B returns and the auto populated GSTR 2A. Such tax proposal was confirmed because the petitioner did not respond to any of the notices. Since the petitioner asserts that she could not respond on account of not being aware of proceedings, 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. On instructions, learned counsel for the petitioner agrees to remit 10% of the disputed tax demand as a condition for remand. He makes a request that the sum of Rs. 31,433/- paid by him may be adjusted and that he would make good the shortfall. The impugned order dated 05.10.2023 is set aside on condition that the petitioner remits, in the aggregate, 10% of the disputed tax demand after taking into consideration any remittance previously made in that regard. Such remittance shall be made with in two weeks from the date of receipt of a copy of this order - petition disposed off.

Summary

The High Court of Madras set aside the order dated 05.10.2023, allowing the petitioner to contest the tax demand by remitting 10% of the disputed amount within two weeks. The petitioner can reply to the show cause notice during this period. The respondent must provide a reasonable opportunity for the petitioner to be heard and issue a fresh order within three months. Case W.P.No.14648 of 2024 is disposed of accordingly.