2024 (6) TMI 741 - HC - GST

Tax Relief Granted for Cancer Patient: Order Set Aside, Hearing Opportunity Provided, 10% Tax Deposit Mandated

Tvl. B.L. Collection Versus The Deputy Commercial Tax Officer, The Assistant Commissioner (ST), The Branch Manager, City Union Bank Limited

HC granted relief to petitioner challenging tax order due to cancer diagnosis. Court set aside original order, remanded matter for reconsideration, and ... Challenge to order and proceedings - petitioner was unable to respond to the show cause notice or participate in proceedings due to the petitioner being diagnosed with cancer - discrepancy between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A - HELD THAT:- On examining the impugned order, it is evident that the tax proposal was confirmed on the ground that the petitioner did not respond to the show cause notice or attend the personal hearing. Upon consideration of the averments in the affidavit and the submissions of learned counsel, the interest of justice warrants that the petitioner be provided an opportunity by putting the petitioner on terms. Learned counsel submits, on instructions, that the petitioner agrees to remit 10% of the disputed tax demand as a condition for remand. The impugned order dated 01.09.2023 is set aside and the matter is remanded for reconsideration on condition that the petitioner remits 10% of the disputed tax demand as agreed to within a period of two weeks from the date of receipt of a copy of this order - Petition disposed off. Issues involved: Challenge to order in original and proceedings due to inability to participate because of illness.Summary:The petitioner, engaged in the business of buying and selling cloth and apparel, challenged an order in original and subsequent proceedings in a writ petition, citing inability to respond due to being diagnosed with cancer in 2021. The tax proposal in question related to a discrepancy between the petitioner's GSTR 3B returns and auto-populated GSTR 2A. The petitioner sought an opportunity to explain the discrepancy, stating inability to participate due to illness. The Government Advocate confirmed issuance of notices and hearings to the petitioner.Upon examination, it was found that the tax proposal was confirmed due to the petitioner's non-response to notices and hearings. In the interest of justice, the petitioner was granted an opportunity on condition of remitting 10% of the disputed tax demand. The impugned order was set aside, and the matter remanded for reconsideration with the specified condition and timeline for response. Respondents were directed to provide a reasonable opportunity for the petitioner, including a personal hearing, and issue a fresh order within three months of receiving the petitioner's reply. The bank attachment was lifted, and the writ petition was disposed of without costs.