2024 (10) TMI 1113 - HC - GST

Tax Demand Order Overturned: Petitioner Granted 15 Days to Respond, Bank Attachment Lifted for Fair Reconsideration

HC of Madras set aside the tax demand order, remanding the case for reconsideration. The petitioner was granted 15 days to submit a reply to the show ... Challenge to writ petition - petitioner did not have a reasonable opportunity to contest the tax demand on merits - violation of principles of natural justice - mismatch between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A - HELD THAT:- On examining the impugned order, it is clear that the tax proposal was confirmed because the taxpayer failed to provide supporting documents. By taking note of the assertion that non- participation was on account of not being aware of these proceedings, it is just and appropriate that the petitioner be provided an opportunity to contest the tax proposal on merits. In this connection, it should be noticed that a sum of about Rs. 2.7 crore was recovered from the petitioner's bank account and that the petitioner had remitted 10% of the disputed tax demand earlier while proposing to file the appeal. To that extent, revenue interest is secured. The impugned order dated 15.09.2023 is set aside and the matter is remanded for reconsideration - Petition disposed off by way of remand. The High Court of Madras set aside the order dated 15.09.2023 and remanded the matter for reconsideration as the petitioner did not have a reasonable opportunity to contest the tax demand on merits. The petitioner is allowed to submit a reply to the show cause notice within fifteen days, and the respondent must provide a reasonable opportunity, including a personal hearing. The bank attachment is raised, and the case is disposed of with no costs.