2024 (9) TMI 819 - HC - GST

Tax Dispute Resolution: Petitioner Granted Partial Payment Option and Right to Respond to Show Cause Notice

M/s. Raj Rekha Versus The Deputy State Tax Officer Chennai

HC allowed petitioner to remit 10% of disputed tax demand within two weeks. Petitioner can submit reply to show cause notice. Upon payment satisfaction, ... Principles of natural justice - order challenged on the ground of denial of reasonable opportunity to the petitioner - petitioner was unaware of proceedings culminating in the impugned order because GST compliances were entrusted to an accountant and such accountant failed to verify the “view additional notices and orders” tab of the GST portal - alleged failure of the petitioner to reverse Input Tax Credit - HELD THAT:- On perusal of the impugned order, it is evident that the tax proposal pertained to the alleged failure of the petitioner to reverse Input Tax Credit to the extent of credit notes issued by suppliers. Learned counsel for the petitioner contended that Input Tax Credit was availed of net of the value of such credit notes. In these circumstances, it is just and necessary that the petitioner be provided an opportunity, albeit by putting the petitioner on terms. The impugned order dated 31.07.2023 is set aside on 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. Within the said period, the petitioner is also permitted to submit a reply to the show cause notice. Petition disposed off. The High Court set aside the order dated 31.07.2023, allowing the petitioner to remit 10% of disputed tax demand within two weeks. The petitioner can submit a reply to the show cause notice, and upon satisfaction of payment, the respondent must provide a reasonable opportunity for a fresh order within three months. Case W.P.No.11217 of 2024 is disposed of with no costs.