GST Assessment Order Invalidated Due to Lack of Personal Hearing, Petitioner Granted Opportunity to Respond HC found a breach of natural justice in GST assessment order. The court set aside the original order and remanded the matter, granting the petitioner 15 ...
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GST Assessment Order Invalidated Due to Lack of Personal Hearing, Petitioner Granted Opportunity to Respond
HC found a breach of natural justice in GST assessment order. The court set aside the original order and remanded the matter, granting the petitioner 15 days to file a reply and directing respondent to provide a personal hearing. A fresh order was to be issued within two months, emphasizing procedural fairness in tax proceedings.
Issues involved: Challenge to order on breach of principles of natural justice
The petitioner challenged an order dated 03.05.2023 on the grounds of breach of principles of natural justice. The petitioner claimed unawareness of the proceedings leading to the impugned assessment order as GST compliances were handled by a consultant who did not inform the petitioner. The tax demand in question pertained to a discrepancy between the petitioner's GSTR-3B and auto-populated GSTR-2A. The petitioner sought an opportunity to establish the proper availment of Input Tax Credit (ITC) and submitted additional documents to prove the genuineness of purchases.
Court's Decision and Reasoning:
Upon review, the Court found that the impugned order related to the discrepancy between the GSTR 3B and GSTR-2A returns. The petitioner had provided documents to support the claim of being entitled to ITC. As the petitioner was not heard before the issuance of the order, the Court decided to set aside the order dated 03.03.2023 and remand the matter for reconsideration. The petitioner was granted 15 days to file a reply to the show cause notice, and the respondent was directed to provide a reasonable opportunity to the petitioner, including a personal hearing. A fresh order was to be issued within two months from the receipt of the petitioner's reply.
The Court emphasized the importance of principles of natural justice and noted that the petitioner had already remitted 10% of the disputed tax demand before filing the writ petition. The case was disposed of without any order as to costs, and the connected miscellaneous petitions were closed accordingly.
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