2024 (10) TMI 1222 - HC - GST

Violation of principles of natural justice - sufficient opportunity was not provided to the petitioner to contest the tax proposal on merits - tax liability imposed in respect of the mismatch between the petitioner s GSTR 3B return and the auto populated GSTR - HELD THAT - The petitioner s reply dated 11.12.2023 is on record. Apart from referring to circular No.183 and pointing out that GSTR 2A was notified by circular issued on 11.11.2019, no other documents were enclosed with such reply. The tax proposal was confirmed in such circumstances. Since learned counsel for the petitioner submits that the petitioner is in a position to establish that only eligible ITC was claimed, the interest of justice warrants that another opportunity be provided to the petitioner by putting the petitioner on terms. The impugned order dated 31.12.2023 is set aside on condition that the petitioner remits 15% of the disputed tax demand within three weeks from the date of receipt of a copy of this order. Within the said period, the petitioner is permitted to submit additional documents, if any - petition disposed off.

Summary

The High Court set aside the order dated 31.12.2023, directing the petitioner to remit 15% of the disputed tax demand within three weeks and submit additional documents. The respondent must then provide a reasonable opportunity for a fresh assessment order within three months. The bank attachment is lifted, and the Writ Petition is disposed of without costs.