Tax Credit Restoration Granted After Consultant Negligence Leads to Missed GST Notice, Fresh Hearing Ordered Within 4 Weeks

HC allows tax credit reconsideration for petitioners who missed a GST notice due to consultant's negligence. The court set aside the original order, directing the proper officer to provide a fresh hearing within 4 weeks. Petitioners must pay Rs. 50,000 to State Legal Services Authority and submit a response within 10 days.

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Issues involved:
The petitioners challenge an order issued u/s 73 (9) of the WBGST & CGST Act, 2017 for the financial year 2017-18 due to an error in reporting Input Tax Credit on Import of Goods. The petitioners seek reconsideration by the proper officer.

Details of the judgment:

1. The petitioners were served with a show cause notice u/s 73 (1) of the said Act, but they could not access the notice on the portal as their consultant did not convey the information to them.

2. The consultant responsible for monitoring the portal left the job without informing the petitioners, leading to the petitioners discovering the order dated 29th August 2023 passed u/s 73 (9) of the said Act at a later stage.

3. During the filing of GSTR-3B for the financial year 2017-18, an error occurred where Input Tax Credit on Import of Goods was reported in the wrong table. The petitioners seek reconsideration by the proper officer after rectifying the error in their annual returns.

4. The petitioners request an opportunity for reconsideration by the proper officer due to their failure to represent themselves properly and rectify the error.

5. The State's advocate mentions that the order is appealable, and the petitioners have the option to approach the appellate authority.

6. The Court acknowledges a bonafide error on the part of the petitioners and the consultant's role in the miscommunication. It decides to provide the petitioners with a further opportunity to explain the error before the proper officer.

7. The order dated 29th August 2023 is set aside, and the matter is remanded back to the proper officer for reconsideration. The petitioners are given 10 days to file their response, and the proper officer is directed to dispose of the proceeding within 4 weeks after affording a personal hearing.

8. The petitioners are required to make a payment of Rs. 50,000 to the State Legal Services Authority within 10 days and provide proof of payment to the proper officer during the hearing.

9. The writ petition is disposed of based on the above directions and observations.

10. All parties are instructed to act based on the server copy of the order downloaded from the Court's official website.

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