2024 (7) TMI 1206 - HC - GST

Tax Relief Granted: Petitioner Wins Challenge, Must Deposit 10% and Submit Consolidated Reply Within 30 Days

HC granted petitioner relief in tax dispute, quashing impugned order and providing opportunity to address grievances. Petitioner must deposit 10% disputed ... Violation of principles of natural justice - seeking one opportunity to explain the position - it is submitted that the petitioner was unaware of the impugned order - HELD THAT:- The petitioner deserves a chance to redress its grievance subject to the fulfilment of conditions imposed - The impugned order stands quashed and the same shall be treated as Addendum to the Show Cause Notices that preceded with the impugned order. This Writ Petition stands disposed of. Issues:Challenging an impugned order for the Assessment Year 2017-2018 based on failure to respond to various Notices; Dispute regarding demands confirmed under VAT and GST regimes; Petitioner seeking redressal due to unawareness of impugned order; Respondent arguing lack of merit citing Supreme Court decisions.Analysis:The petitioner approached the court challenging the impugned order dated 19.12.2023 for the Assessment Year 2017-2018. The petitioner, described as a small-time operator, failed to respond to multiple Notices preceding the impugned order, including a Show Cause Notice and Personal Hearing Notices. Due to this failure and lack of awareness, the petitioner only received intimation regarding the order in July 2024, prompting the legal action. The dispute involves demands confirmed under both the VAT and GST regimes, with the petitioner requesting an opportunity to explain the situation, emphasizing the turnover under the VAT Act and the need for clarification.The respondent, represented by the learned Government Advocate, argued that the Writ Petition lacked merit and should be dismissed. Citing Supreme Court decisions, the respondent contended that the appeal before the Appellate Authority was time-barred, referencing specific legal precedents. However, after considering the submissions from both sides, the court decided to grant the petitioner a chance to address the grievance under certain terms. The court ordered the quashing of the impugned order, treating it as an Addendum to the preceding Show Cause Notices. Additionally, the petitioner was directed to deposit 10% of the disputed tax and file a consolidated reply within 30 days. Cooperation with the respondents was mandated, with failure to comply leading to the revocation of the liberty granted by the court. The judgment concluded by disposing of the Writ Petition with specific instructions and observations, emphasizing no costs and closing the connected Miscellaneous Petition.