2025 (1) TMI 775 - HC - GST

Challenge to impugned order on the ground of violation of principles of natural justice - petitioner is ready and willing to pay 10% of the disputed tax and that he may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which the learned Special Government Pleader appearing for the respondent does not have any serious objection. HELD THAT - The impugned order dated 19.08.2024 is set aside and the petitioner shall deposit 10% of the disputed tax within a period of four weeks from the date of receipt of a copy of this order. On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four weeks from the date of receipt of a copy of this order along with supporting documents/material. Petition disposed off.

Summary

In the case before the Madras High Court, the petitioner challenged an impugned order dated 19.08.2024, arguing it violated the principles of natural justice. The petitioner, a registered dealer under the GST Act, faced discrepancies related to the under-declaration of ineligible Input Tax Credit (ITC) for the period 2019-20. Despite receiving multiple notices for personal hearings, the petitioner claimed unawareness of the proceedings due to improper service of notices, which were only uploaded on the GST Portal.

The petitioner referenced a similar case, Sree Manoj International Vs. Deputy State Tax Officer, where the court remanded the matter subject to a 10% payment of disputed taxes. The petitioner expressed readiness to comply with this condition and sought another opportunity to present objections.

The court set aside the impugned order, allowing the petitioner to deposit 10% of the disputed tax within four weeks. Upon compliance, the impugned order would be treated as a show cause notice, and the petitioner could submit objections with supporting documents. The respondent must consider these objections and pass orders according to the law, ensuring a reasonable hearing opportunity. Failure to comply would result in the restoration of the impugned order. The writ petition was disposed of without costs, and connected miscellaneous petitions were closed.