2024 (9) TMI 881 - HC - GST

Tax Assessment Voided: Procedural Errors Invalidate Order, Petitioner Granted Hearing Rights with 10% Deposit Requirement

HC allowed the petition, setting aside the tax assessment order due to procedural violations of natural justice. The case was remanded for ... Challenge to assessment order - violation of principles of natural justice - SCN was uploaded on the “View Additional Notices and Orders” tab on the GST portal and not served on the petitioner through any other mode - HELD THAT:- Section 169 of applicable GST enactments provides for service of notice through any of the modes specified therein. The record shows that the impugned order was preceded by a show cause notice dated 19.05.2023 and reminder for a personal hearing. On perusal of the impugned order, it is evident that the confirmed tax demand pertains to the availment of Input Tax Credit (ITC) in respect of the purchase of a car. On account of the petitioner not being heard, the petitioner was not in a position to endeavor to persuade the respondent that the purchase of the car was in course of business. For that limited reason, the impugned order calls for interference by putting the petitioner on terms. The impugned order dated 20.07.2023 is set aside and the matter is remanded for reconsideration subject to the petitioner remitting 10% of the disputed tax demand as agreed to with in a period of two weeks from the date of receipt of a copy of this order - Petition disposed off by way of remand. The High Court set aside the assessment order due to a breach of natural justice principles. The petitioner was not properly served notices, leading to lack of opportunity to present their case. The matter is remanded for reconsideration after the petitioner remits 10% of the disputed tax demand. The respondent must provide a reasonable opportunity for the petitioner to be heard and issue a fresh order within two months.