2024 (10) TMI 1521 - HC - GST

Challenge to assessment order - failure to consider all the GSTR-3B returns filed by the petitioner - violation of principles of natural justice - HELD THAT - The petitioner placed on record the GSTR 3B returns for several months. On comparing the impugned order against the GSTR 3B return for the month of May 2022-2023, it is evident that the turnover reflected in one single month has been compared with the turnover reflected in the GSTR 7 return filed by the counter party. Given the fact that the GSTR 7 return is an annual return, the comparison made by the adjudicating authority is undoubtedly unsustainable. At the same time, it should be noticed that the petitioner was provided multiple opportunities but failed to respond to either the notice in GSTR ASMT-10 or the show cause notice. Also, the petitioner submits that the petitioner agrees to remit 10% of the disputed tax demand as a condition for remand. The impugned order dated 07.09.2023 is quashed subject to the condition that the petitioner remits 10% of the disputed tax demand with in a period of three 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 with in the aforesaid period - As a corollary of the assessment order being quashed, the bank attachment stands raised - Petition disposed off.

Summary

The High Court of Madras quashed an assessment order dated 07.09.2023 due to breach of natural justice and failure to consider all GSTR-3B returns filed by the petitioner, a registered PWD contractor. The petitioner agreed to remit 10% of the disputed tax demand for a remand. The court directed the respondent to provide a reasonable opportunity to the petitioner for a fresh order within two months. The bank attachment was lifted as a result of the assessment order being quashed. The Writ Petition was disposed of with no order as to costs.