2024 (8) TMI 1251 - HC - GST

Tax Challenge Upheld: Hollow Block Manufacturer Wins Right to Contest Demand and Seek Reconsideration of Order

HR Enterprises Versus State Tax Officer, Chennai

HC of Madras set aside a tax-related order for a hollow block manufacturer. The court remanded the case for reconsideration, allowing the petitioner to ... Violation of principles of natural justice - non-service of SCN - notice and order were uploaded on the GST portal in the “View Additional Notices and Orders” tab - HELD THAT:- The petitioner has asserted in the affidavit that the tipper lorry was purchased in furtherance of business. The entire tax liability along with interest thereon was appropriated from the bank account of the petitioner. Consequently, revenue interest has been secured at this juncture. In these facts and circumstances, the interest of justice warrants that the petitioner be provided an opportunity to contest the tax demand on merits. The impugned order dated 20.07.2023 is set aside and the matter is remanded for reconsideration by the respondent. The petitioner is permitted to submit a reply to the show cause notice within a period of 15 days from the date of receipt of a copy of this order - Petition disposed off by way of remand. The High Court of Madras set aside the order dated 20.07.2023 in a writ petition filed by a hollow block manufacturer regarding the purchase of a tipper lorry. The petitioner was granted the opportunity to contest the tax demand on merits, and the matter was remanded for reconsideration by the respondent. The petitioner was directed to submit a reply to the show cause notice within 15 days, and a fresh order was to be issued within three months. Amounts appropriated earlier were to abide by the outcome of the remanded proceedings. The writ petition was disposed of without any order as to costs.