2024 (9) TMI 809 - HC - GST

Tax Demand Dispute Resolved: Procedural Flaws Nullify Original Order, Petitioner Granted Chance to Contest Assessment with 10% Deposit

M/s. Gauresh Industries Versus The Deputy State Tax Officer Hosur

The SC reviewed a tax demand dispute, finding procedural irregularities. Court set aside the original order, directing the tax authority to issue a fresh ... Violation of pinciples of natural justice - order challenged on the ground that the petitioner did not have a reasonable opportunity to contest the tax demand on merits - petitioner asserts that he was unaware of these proceedings - discrepancy between the petitioner's GSTR 3B returns and the auto populated GSTR 2A - HELD THAT:- On perusal of the impugned order, it is clear that the tax proposal pertains to a difference between the petitioner's GSTR 3B returns and the auto populated GSTR 2A. The tax proposal was confirmed because the petitioner did not reply to the show cause notice. The petitioner asserts that all necessary documents are available to establish that the availment of Input Tax Credit was in order. In these circumstances, it is just and appropriate that the petitioner be provided an opportunity after putting the petitioner on terms. The impugned order dated 17.10.2023 is set aside subject to the petitioner remitting 10% of the disputed tax demand within two weeks from the date of receipt of a copy of this order - petition disposed off. The petitioner challenged an order for tax demand, claiming lack of opportunity to contest. Court found discrepancy in GSTR returns, petitioner to remit 10% of tax demand for review. Impugned order set aside, petitioner given chance to reply to show cause notice. Fresh order to be issued within three months. Case disposed with no costs.