2024 (9) TMI 751 - HC - GST

Tax Assessment Order Invalidated Due to Procedural Flaws, Directing Fresh Review with Fair Hearing and Timely Resolution

M/s. Arupadai Infrastructure Versus The Deputy State Tax Officer Maduranthagam, The Branch Manager Chennai

HC Madras set aside tax assessment order due to procedural deficiency. Court remanded matter for reconsideration, directing petitioner to respond to show ... Violation of principles of natural justice - petitioner did not have a reasonable opportunity to contest the tax demand on merits - difference between the petitioner's GSTR 3B and GSTR 1 - RCM liability mismatch - HELD THAT:- The petitioner has placed on record proof of payment of tax dues relating to the difference between the petitioner's GSTR 3B and GSTR 1. As regards the RCM liability mismatch, the petitioner has placed on record the relevant GSTR 3B returns to substantiate the contention that the tax proposal was the result of an inadvertent error. Since the tax dues appear to have been recovered, revenue interest has been secured at this juncture. The impugned order dated 17.11.2023 is set aside insofar as it relates to RCM liability mismatch and the matter is remanded for reconsideration by the first respondent. The petitioner is directed to submit a reply to the show cause notice within fifteen days from the date of receipt of a copy of this order. Petition disposed off. The High Court of Madras set aside the assessment order dated 17.11.2023 in a writ petition due to lack of opportunity for the petitioner to contest the tax demand. The petitioner had issues with GSTR 3B returns and RCM liability mismatch, seeking another chance to contest. The court remanded the matter for reconsideration, directing the petitioner to reply to the show cause notice within fifteen days. The first respondent must provide a reasonable opportunity, including a personal hearing, and issue a fresh order within three months. No costs were awarded, and related motions were closed. (Case: W.P.No.11342 of 2024)