Tax Demand Notice Invalidated: Procedural Flaws Expose Need for Fair Hearing and Proper Review Process

HC found procedural irregularities in tax demand notice. The court set aside the original order, directing tax authorities to provide reasonable opportunity for hearing. Petitioner agreed to pay 10% of disputed tax demand. Respondent must issue fresh order within two months after reviewing petitioner's reply, ensuring fair opportunity to present case.

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Issues:
Challenge to an order on the ground of lack of reasonable opportunity.

Analysis:
The petitioner, engaged in the business of supplying water purifiers and R.O. systems, received a notice regarding discrepancies in returns. The petitioner claims they were unable to respond to the intimation or show cause notice as it was uploaded on the GST portal without being served through any other mode. The petitioner's counsel argues that detailed explanations were provided upon receiving the notice and is willing to remit 10% of the disputed tax demand.

The Government Advocate representing the respondent acknowledges receipt of notice and argues that the petitioner had multiple opportunities to contest the tax demand. The confirmed tax demand pertains to discrepancies in Input Tax Credit claimed by the petitioner, confirmed without a hearing. The petitioner agrees to pay 10% of the disputed tax demand for remand, leading the court to set aside the impugned order on the condition of remitting the agreed amount within two weeks.

The court directs the petitioner to submit a reply to the show cause notice within the given period. Upon satisfaction of receiving the remittance and the petitioner's reply, the respondent is instructed to provide a reasonable opportunity, including a personal hearing, and issue a fresh order within two months. The writ petition is disposed of without any costs, and connected miscellaneous petitions are closed.

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