2025 (2) TMI 780 - HC - GST

Challenge to impugned order on the premise that there is violation of principles of natural justice - petitioner is ready and willing to pay 25% of the disputed tax and seeks grant of one final opportunity before the adjudicating authority - HELD THAT - The impugned order dated 18.07.2024 is set aside. The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent within a period of four weeks from the date of receipt of a copy of this order.

Summary

The present case involves a writ petition challenging an order dated 18.07.2024 concerning a violation of principles of natural justice in the context of Goods and Services Tax Act, 2017 for the period 2023-24. The key issues considered in this judgment are the alleged violation of natural justice principles in the assessment process due to lack of communication and opportunity for the petitioner to participate in the proceedings.The petitioner, engaged in trading of silver and related products, filed returns and paid taxes for the relevant period. However, upon verification of GSTR returns, it was discovered that the petitioner had supplied goods and services without issuing invoices, leading to the imposition of a penalty. The petitioner claimed that they were not adequately informed of the proceedings, as the impugned order was uploaded on the GST Portal without proper notification. The petitioner sought an opportunity to explain the alleged discrepancies before the adjudicating authority.The court considered the recent judgment in a similar case and decided to set aside the impugned order dated 18.07.2024. The petitioner was directed to deposit 25% of the disputed taxes within four weeks. Any amount already paid or recovered would be adjusted from the 25% directed to be paid. The assessing authority was instructed to intimate the balance amount to be paid, if any, within one week, with the petitioner required to deposit the remaining sum within three weeks. Failure to comply with the payment condition within the stipulated period would result in the restoration of the impugned order.Furthermore, the court clarified that compliance with the payment condition would treat the impugned order as a show cause notice, allowing the petitioner to submit objections along with supporting documents within four weeks. If the conditions were not met, the impugned order would stand restored. Any recovery actions, such as attachment of bank accounts, would be lifted upon compliance with the payment condition.In conclusion, the court disposed of the writ petition with no costs imposed, emphasizing the importance of complying with the payment conditions and allowing the petitioner an opportunity to present objections within the specified timeline.