2024 (9) TMI 797 - HC - GST

Tax Dispute Resolution: HC Strikes Down Demand Order, Mandates 10% Deposit and Fair Reassessment Within Three Months

M/s. Revathi Readymades Versus The Deputy State Tax Officer Chennai

The HC of Madras nullified the tax demand order, mandating the petitioner to deposit 10% of disputed tax within two weeks. The respondent must provide a ... Challenge to order in original - petitioner did not have a reasonable opportunity to contest the tax demand on merits - SCN and impugned order were uploaded on the GST portal, but not communicated to the petitioner through any other mode - violation of principles of natural justice - mismatch between the petitioner's GSTR 3B returns and the auto populated GSTR 2A - HELD THAT:- Such order was issued without hearing the petitioner and the tax proposal was confirmed because the petitioner did not respond to the show cause notice. While the petitioner cannot be absolved of responsibility in such regard, it is just and necessary that the petitioner be provided an opportunity after putting the petitioner on terms. The impugned order dated 28.04.2023 is set aside, subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a maximum period of two weeks from the date of receipt of a copy of this order. The petitioner is also permitted to submit a reply to the show cause notice within the aforesaid period - petition disposed off. The High Court of Madras set aside the order dated 28.04.2023 due to lack of opportunity for the petitioner to contest the tax demand. The petitioner must remit 10% of the disputed tax demand within two weeks and submit a reply to the show cause notice. The respondent is directed to provide a reasonable opportunity, including a personal hearing, and issue a fresh assessment order within three months. Case W.P.No.10645 of 2024 is disposed of with no costs.