2024 (9) TMI 753 - HC - GST

Tax Order Overturned: Procedural Flaws Invalidate Assessment, Mandates Fresh Hearing with Partial Tax Deposit

Tvl. Vimal Telelinks Versus The Deputy Commercial Tax Officer Erode

SC found procedural irregularities in tax order. Held that natural justice principles were violated due to lack of proper notice. Order was set aside and ... Violation of principles of natural justice - petitioner was unaware of these proceedings because the intimation and show cause notice were uploaded on the GST portal but not communicated to the petitioner through any other mode - confirmation of tax liability - HELD THAT:- On perusal of the show cause notice, it appears that the petitioner was called upon to show cause with regard to the proposed tax liability of Rs.33,270/-. When this is compared with the notice in Form ASMT-10 and the impugned order, in these documents, the discrepancy /confirmed tax liability was specified as Rs.1,84,835/- - Since the tax proposal was confirmed without the petitioner being heard and by taking note of the discrepancy, it is just and appropriate that the petitioner be provided an opportunity, albeit by putting the petitioner on terms. The impugned order dated 10.10.2023 is set aside and the matter is remanded to the respondent for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand of Rs.1,84,835/- within two weeks from the date of receipt of a copy of this order - Petition disposed off by way of remand. The petitioner challenged an order for breach of natural justice. Notice issued, petitioner unaware, discrepancy in tax liability. Impugned order set aside, remanded for reconsideration. Petitioner to remit 10% of disputed tax demand and submit reply within two weeks. Respondent to provide opportunity for personal hearing and issue fresh order within three months. Case disposed with no costs.