2024 (9) TMI 429 - HC - GST

Tax Assessment Order Nullified: Procedural Flaws Expose Lack of Natural Justice in Administrative Proceedings

Ace Industrial Gases Pvt. Ltd. Versus The Assistant Commissioner (ST) Chennai

The HC of Madras nullified the tax assessment order due to procedural impropriety. The court found a breach of natural justice as the petitioner was not ... Violation of principles of natural justice - SCN and impugned order were uploaded on the “View Additional Notices and Orders” tab on the GST portal, but not communicated to the petitioner through any other mode - HELD THAT:- On examining the impugned order, it is evident that the tax proposal pertained solely to the alleged wrongful availment of ITC. Learned counsel for the petitioner submitted that the petitioner availed of eligible ITC but committed an inadvertent error while filling up GSTR 3B returns. In these circumstances, it is just and necessary that the petitioner be provided an opportunity to contest the tax demand on merits, albeit by putting the petitioner on terms. The impugned order dated 21.11.2023 is set aside and the matter is remanded for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to with in a period of two weeks 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 assessment order dated 21.11.2023 due to breach of natural justice principles. The petitioner was not informed about the proceedings properly. The petitioner agreed to remit 10% of the disputed tax demand for reconsideration. The court directed the respondent to provide a reasonable opportunity to the petitioner for a fresh assessment order within three months. The writ petition was disposed of without any costs.