2024 (9) TMI 811 - HC - GST

Procedural Defects Invalidate Tax Order: Petitioner Granted Fair Hearing and Opportunity to Explain Disputed Demand

M/s. Sree Manoj International Versus The Deputy State Tax Officer Tiruppur

The HC of Madras invalidated the original order due to procedural irregularities in natural justice. The court found that notice via GST portal alone was ... Breach of principles of natural justice - Petitioner was unaware of proceedings until recently since the notices and order were uploaded in the GST portal - notices and orders not communicated to the petitioner through any other mode - not communicated to the petitioner through any other mode - HELD THAT:- On perusal of the impugned order, it is evident that the tax proposal pertaining to a mismatch between the GSTR 3B returns of the petitioner and the auto-populated GSTR 2A. It is also clear that the tax liability was confirmed because the petitioner failed to reply to the show cause notice. The petitioner asserts that there is no discrepancy and that the IGST component was not taken into consideration. In these circumstances, albeit by putting the petitioner on terms, the matter requires reconsideration. The impugned order dated 01.03.2024 is set aside subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a period of two weeks from the date of receipt of a copy of this order. With in the aforesaid period, the petitioner is also permitted to submit a reply to the show cause notice - Petition disposed off. The High Court of Madras set aside the original order due to a breach of natural justice principles. The petitioner was unaware of proceedings as notices were only uploaded on the GST portal. The petitioner agreed to remit 10% of disputed tax demand for reconsideration. The court directed the respondent to provide a reasonable opportunity for the petitioner to explain the discrepancy and issue a fresh order within three months. Case disposed of with no costs.