Tax Demand Order Overturned: Petitioner's Right to Fair Hearing Upheld, Opportunity for Representation Restored SC set aside tax demand order, finding petitioner was not given reasonable opportunity to contest. Court remanded matter for reconsideration, directing ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax Demand Order Overturned: Petitioner's Right to Fair Hearing Upheld, Opportunity for Representation Restored
SC set aside tax demand order, finding petitioner was not given reasonable opportunity to contest. Court remanded matter for reconsideration, directing respondent to provide personal hearing and allow petitioner to reply to show cause notice within two weeks. Disputed tax amount remains subject to final proceedings outcome.
Issues involved: Challenge to tax demand order due to lack of reasonable opportunity for contesting the demand.
Summary: The petitioner challenged an order dated 30.10.2023, claiming they did not have a fair chance to contest the tax demand. The petitioner's part-time accountant failed to check the GST portal for uploaded notices and orders, leading to unawareness of the proceedings. The tax proposal was based on a disparity between the petitioner's GSTR 3B return and GSTR 1 statement, specifically regarding the calculation of GST at 36%. An amount of Rs. 68,677/- was debited from the petitioner's electronic credit ledger out of the disputed tax liability of Rs. 1,92,423/-. The petitioner sought an opportunity to contest the tax demand on merits.
The Government Advocate pointed out that the petitioner was given sufficient opportunity to contest the tax demand through a notice in Form ASMT 10 and a show cause notice. The impugned order confirmed the tax proposal due to the petitioner's non-response to the show cause notice and absence at the personal hearing. The court acknowledged the mismatch between the GSTR 3B return and GSTR 1 statement, where GST was calculated at 36% for certain items. In the interest of justice, the court set aside the order and remanded the matter for reconsideration by the respondent.
The petitioner was allowed to reply to the show cause notice within two weeks, and the respondent was directed to provide a reasonable opportunity, including a personal hearing, and issue a fresh order within three months. The amount debited from the petitioner's electronic credit ledger would be subject to the outcome of the remanded proceedings. The writ petition was disposed of without costs, and connected miscellaneous petitions were closed.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
