2024 (11) TMI 455 - HC - GST

Violation of principles of natural justice - blocking of Input Tax Credit (ITC) - HELD THAT - The documents on record indicate that the petitioner was put on notice, albeit by uploading the intimation and notices on the GST portal. However, it is equally evident from the record that the petitioner did not participate in proceedings and, therefore, could not place on record documents to contest the reversal of ITC. In these circumstances, it becomes necessary to balance the interest of the petitioner and revenue interest. On instructions, learned counsel for the petitioner submits that the petitioner would remit 10% of the disputed tax demand. The impugned order calls for interference solely for the reason of providing the petitioner an opportunity to contest the tax demand, albeit on terms - the impugned order is quashed subject to the petitioner remiting 10% of the disputed tax demand with in a maximum period of two weeks from the date of receipt of a copy of this order - petition disposed off.

Summary

The petitioner challenged an order for breach of natural justice in a GST case involving Input Tax Credit. The court found that the petitioner was unaware of proceedings and quashed the order, allowing the petitioner to contest the tax demand by remitting 10% within two weeks. The assessing officer must provide a fresh assessment order within two months after receiving the reply. Case disposed of with no costs.