2024 (9) TMI 887 - HC - GST

Tax Order Nullified: Procedural Error Leads to Remittance of Rs.50,00,000 and Mandatory Document Submission Within Three Weeks

HC nullified the original tax order due to procedural deficiency, mandating petitioner to remit Rs.50,00,000 and submit documents within three weeks. ... Violation of principles of natural justice - petitioner did not have a reasonable opportunity to contest the tax demand on merits - HELD THAT:- On perusal of the impugned order, it is evident that the tax proposal pertains to unreconciled turnover and that the respondent took note of the reconciliation statement. Since the petitioner did not respond to the show cause notice, it appears that the tax proposal was confirmed. Learned counsel for the petitioner points out that all necessary documents are available with the petitioner to explain the unreconciled turnover. In these circumstances, it is just and necessary to provide another opportunity to the petitioner in this regard. However, since the petitioner failed to respond to notices or participate in proceedings, the petitioner should be put on terms. The impugned order dated 26.12.2023 is set aside on condition that the petitioner remits a sum of Rs.50,00,000/- with in three 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 by enclosing all relevant documents - petition disposed off. The High Court set aside the Order-in-Original due to lack of opportunity for the petitioner to contest tax demand. Petitioner to remit Rs.50,00,000 and submit reply with relevant documents within three weeks. Respondent to provide opportunity for personal hearing and issue fresh order within two months. Case disposed with no costs.