2024 (9) TMI 886 - HC - GST

Tax Assessment Challenged: Procedural Fairness Prevails as Assessment Orders Overturned and Opportunity for Hearing Granted

HC of Madras set aside tax assessment orders due to lack of reasonable opportunity. Remanded to 1st respondent with petitioner required to pay 10% of ... Challenge to assessment orders pertaining to two distinct assessment periods - petitioner did not have a reasonable opportunity to contest the tax demand on merits - orders were uploaded on the “View Additional Notices and Orders” tab on the GST portal and not communicated to the petitioner through any other mode - violation of principles of natural justice - discrepancy between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A returns - HELD THAT:- On perusal of the impugned order, it is evident that the tax proposal was confirmed because the petitioner did not file objections or participate in the personal hearing. The petitioner has asserted that he would be in a position to explain the discrepancy between the GSTR 3B and 2A returns if provided an opportunity. In these circumstances, it is just and appropriate that an opportunity be provided to the petitioner by putting the petitioner on terms. The orders impugned here in are set aside and the matters are remanded to the 1st respondent for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand in respect of each assessment period as agreed to within a period of 15 days from the date of receipt of a copy of this order - Petition disposed off by way of remand. The High Court of Madras set aside the assessment orders challenged by the petitioner due to lack of reasonable opportunity to contest tax demand. The matter is remanded to the 1st respondent with the condition that the petitioner remits 10% of the disputed tax demand for each assessment period. The petitioner can submit a reply to show cause notices within 15 days. The 1st respondent must provide a reasonable opportunity to the petitioner, including a personal hearing, and issue fresh orders within two months. Bank attachments related to the impugned assessment orders are lifted. The writ petitions are disposed of without costs.