2024 (10) TMI 1443 - HC - GST

Challenge to assessment order - discrepancies between the GSTR 3B return of the petitioner - petitioner submits that the petitioner agrees to remit 10% of the disputed tax demand as a condition for remand - HELD THAT - On examining the impugned assessment order, it is evident that the confirmed tax demand has arisen entirely on the basis of discrepancies between the GSTR 3B return of the petitioner and the auto- populated GSTR 2A return. It is also evident that the petitioner was not heard before the tax demand was confirmed. The assessment order was preceded by a show cause notice and intimation. Therefore, the explanation of the petitioner that he was unable to respond to the above on account of being unaware of the same is not entirely convincing. At the same time, in order to provide an opportunity to the petitioner to contest the tax demand on merits, it is inclined to interfere with the impugned order by putting the petitioner on terms. The impugned assessment order is quashed subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a maximum period of two weeks from the date of receipt of a copy of this order. The petitioner is also permitted to submit a reply to the show cause notice dated 03.09.2022 within the aforesaid period of two weeks - Petition disposed off.

Summary

The High Court of Madras quashed the assessment order dated 12.01.2023 subject to the condition that the petitioner remits 10% of the disputed tax demand within two weeks. The petitioner can submit a reply to the show cause notice dated 03.09.2022 within the same period. The assessing officer must provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh assessment order within two months from the date of receipt of the petitioner's reply. The writ petition was disposed of with no order as to costs.