Tax Dispute Resolution: Petitioner Granted Chance to Challenge Demand by Paying 10% and Responding to Show Cause Notice

HC allowed the writ petition challenging tax demand, remanding the matter for reconsideration. The court set aside the original order, granting petitioner an opportunity to contest tax demand by paying 10% of disputed amount and responding to show cause notice. A fresh order must be passed within three months, ensuring fair hearing and opportunity to present evidence.

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Issues:
Denial of reasonable opportunity to contest tax demand on merits.

Analysis:
The petitioner challenged an order dated 28.11.2023, alleging a lack of opportunity to contest the tax demand. The petitioner claimed ignorance of the proceedings as notices and the order were uploaded on the GST portal. The confirmed tax proposal related to a mismatch between GSTR-3B and GSTR-2A. The petitioner expressed willingness to remit 10% of the disputed tax demand for a remand. The Government Advocate highlighted prior intimations, show cause notice, and a personal hearing notice preceding the impugned order.

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, concerning the discrepancy between filed returns and auto-populated GSTR-2A. The petitioner argued the availability of documents to prove valid Input Tax Credit. The court, in the interest of justice, set aside the order and remanded the matter for reconsideration, with a condition to remit 10% of the disputed tax demand within two weeks. The petitioner was granted an opportunity to reply to the show cause notice, followed by a fresh order within three months upon satisfaction of the remittance.

In conclusion, the writ petition was disposed of with the specified terms, without costs. The connected miscellaneous petitions were also closed as a result of the judgment.

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