2024 (10) TMI 1217 - HC - GST

Legal Challenge Resolved: Cess Demand Partially Suspended with Conditional Compliance and Right to Detailed Response

M/s. Jayasri Traders Versus The Assistant Commissioner (ST) Villupuram II Assessment Circle, The State Tax Officer (Inspection II) Vellore Office of the DC Inspection Villupuram

HC Madras conditionally set aside the order, requiring petitioner to remit 10% of cess demand within two weeks. Petitioner may submit detailed reply to ... Violation of principles of natural justice - materials placed on record by the petitioner were not duly considered - wrongful availment of ITC - HELD THAT:- On perusal of the impugned order, it is evident that the tax dues towards SGST and CGST were discharged by the petitioner. It also appears that 100% penalty was imposed under Section 74 without recording any reasons for invoking Section 74. In these circumstances, the matter requires re-consideration by putting the petitioner on terms. The impugned order dated 28.06.2023 is set aside on condition that the petitioner remits 10% of the cess demand under the impugned order with in two weeks from the date of receipt of a copy of this order. The petitioner is also permitted to submit a detailed reply to the show cause notice during the aforesaid period. Petition disposed off by way of remand. The High Court of Madras set aside the impugned order dated 28.06.2023 on the condition that the petitioner remits 10% of the cess demand within two weeks. The petitioner can submit a detailed reply to the show cause notice, and a fresh order must be issued within three months from the date of receipt of the reply. Case W.P.No.13530 of 2024 is disposed of with no costs.