2024 (10) TMI 715 - HC - GST

Tax Demand Invalidated: Insufficient Opportunity to Contest Leads to Order Reversal, Petitioner Granted Fair Hearing Chance

HC Madras set aside a tax demand order due to insufficient opportunity for the petitioner to contest. The court directed the respondent to provide a fair ... Violation of principles of natural justice - petitioner was not provided a reasonable opportunity to contest the tax demand on merits - petitioner was unaware of proceedings culminating in the impugned order - mismatch between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A - HELD THAT:- On perusal of the impugned order, it is evident that the tax proposal relates to a mismatch between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A. It is also evident that such tax proposal was confirmed because the tax payer did not file objections to the show cause notice. In view of the assertion that the petitioner could not participate in proceedings on account of being unaware of the same, the interest of justice warrants that the petitioner be provided an opportunity to contest the tax demand on merits by putting the petitioner on terms. The impugned order dated 23.12.2023 is set aside on 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. The petitioner is permitted to submit a reply to the show cause notice within the aforesaid period - Petition disposed off. The High Court of Madras set aside an order due to lack of opportunity for the petitioner to contest a tax demand. The petitioner agreed to remit 10% of disputed tax demand for a remand. The court directed the respondent to provide a reasonable opportunity for the petitioner to contest the tax demand on merits. The bank attachment was raised, and the writ petition was disposed of without costs.