Tax Demand Order Overturned: Procedural Fairness Prevails, Petitioner Granted Opportunity to Respond and Explain Circumstances

The HC allowed the writ petition challenging a tax demand order for CGST and SGST. The court found the original order invalid due to lack of natural justice, set it aside, and directed the state to issue a fresh notice to the petitioner. The petitioner was required to provide an explanation upon receiving the new notice in compliance with legal procedures.

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Issues:
Challenge to tax demand order for CGST and SGST due to failure to declare godown as an additional place of business.

Analysis:
The petitioner challenged an order by the Superintendent of Taxes demanding payment of Rs.3,14,052.80 for CGST and SGST, citing the failure to declare a godown as an additional place of business. The petitioner argued that the order was issued without prior notice and contended that the godown was declared as an additional place of business, even though the GST form did not have a specific column for a godown. The State-respondent, represented by the Addl. G.A., opposed the petition, claiming it lacked merit and did not demonstrate any violation of legal or statutory rights.

Upon hearing both parties and examining the evidence, the Court found that the order dated 09.03.2021 was invalid as it was issued without following the principles of natural justice. Consequently, the Court set aside the order but allowed the State-respondents to issue a fresh notice to the petitioner. The petitioner was directed to provide an explanation upon receiving the new notice in compliance with the law. The Court granted the writ petition, allowing it and disposing of the matter accordingly.

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