Taxpayer's Challenge Rejected: Appellate Remedy Available Under Section 107 for Addressing Tax Demand Order The SC dismissed the writ petition challenging a tax demand order under CGST and IGST Acts. Despite the petitioner's claim of no efficacious remedy, the ...
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Taxpayer's Challenge Rejected: Appellate Remedy Available Under Section 107 for Addressing Tax Demand Order
The SC dismissed the writ petition challenging a tax demand order under CGST and IGST Acts. Despite the petitioner's claim of no efficacious remedy, the court found an appeal mechanism under Section 107 of Income Tax Act. The petitioner's failure to respond to show cause notices and appear for hearings led to the order's confirmation. The court directed the petitioner to pursue the alternate appellate remedy.
Issues involved: Challenge to order u/s 73(9) of CGST Act, 2017 and Section 20 of IGST Act, 2017 for non-compliance with show cause notice and personal hearing.
The petitioner challenged an order passed u/s 73(9) of the CGST Act, 2017 and Section 20 of the IGST Act, 2017, stating that the taxpayer failed to respond to the show cause notice within the prescribed time and did not appear for the personal hearing. The order upheld the demand mentioned in the show cause notice due to the taxpayer's lack of response.
The petitioner was issued a show cause notice under Section 73(5) of the Act, requiring appearance on a specified date. Despite filing representations seeking more time to reply, the petitioner did not appear before the authority, leading to the issuance of the impugned order u/s 73(9) upholding the demand.
The petitioner claimed no efficacious remedy of appeal or revision, but during the hearing, it was admitted that an appeal could be made u/s 107 of the Income Tax Act, 1961. The petitioner was advised to deposit a part of the tax amount as required by the Act for the appeal to be entertained.
Considering the petitioner's failure to respond to show cause notices, the court declined to exercise its writ jurisdiction to review the jurisdiction of the notices, dismissing the writ petition. The petitioner was granted liberty to pursue the alternate remedy of appeal before the relevant authorities, with the assurance that the appellate authority would consider all facts presented.
The writ petition was dismissed with the above observations, allowing the petitioner to seek redress through the appeal process.
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