Tax Dispute Resolution: Partial Deposit Ordered, Fresh Hearing Mandated, Petition Partially Allowed Under Procedural Fairness Principles

HC allowed writ petition challenging tax demand, remanding matter for reconsideration. Petitioner directed to deposit 10% of disputed tax and submit supporting documents. Respondent instructed to provide reasonable opportunity for hearing and issue fresh order within two months. Case disposed without cost.

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

Analysis:
The petitioner, engaged in wholesale textile trade, challenged an order dated 29.12.2023, alleging insufficient opportunity to contest a tax demand for the assessment period 2017-2018. The petitioner contended that they could address the defects mentioned in the order if given a chance and offered to remit 10% of the disputed tax as a condition for reconsideration.

The Government Advocate argued that an audit of the petitioner's accounts was conducted, and the show cause notice followed the audit report. It was emphasized that the petitioner, as a registered person, had a duty to monitor the GST portal. However, it was acknowledged that the tax proposal was confirmed due to the lack of supporting documents. Despite this, in the interest of justice, it was deemed necessary to provide the petitioner with an opportunity to contest the tax demand.

Consequently, the High Court set aside the impugned order and remanded the matter for reconsideration. The petitioner was directed to remit 10% of the disputed tax within three weeks and submit relevant supporting documents. Upon verification and satisfaction of the payment, the respondent was instructed to grant a reasonable opportunity for the petitioner, including a personal hearing, and issue a fresh order within two months from receiving the documents.

In conclusion, the writ petition was disposed of with no costs imposed, and connected miscellaneous petitions were closed as per the terms outlined in the judgment.

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