2024 (10) TMI 1526 - HC - GST

GST Order Invalidated: Trade Payables and Employee Benefit Expenses Challenged, Petitioner Granted Reconsideration Opportunity

HC Madras quashed the GST order on trade payables and employee benefit expenses. The case was remanded for reconsideration, granting the petitioner an ... Violation of principles of natural justice - no personal hearing was offered to the petitioner - GST was imposed on amounts payable by the petitioner - trade payable - HELD THAT:- It is unclear from the impugned order as to the basis for imposing GST on total trade payables. It further appears that the amount specified as turnover was taken directly from the balance sheet of the petitioner. Similarly, GST was imposed on employee benefit expenses by taking the amounts from the profit and loss account of the petitioner for the year 2017-18. Once again, it is unclear as to how liability was imposed with regard to employee benefit expenses incurred by the petitioner. In these circumstances, the impugned order cannot be sustained. The impugned order dated 29.12.2023 is quashed and the matter is remanded for reconsideration - Petition disposed off by way of remand. The High Court of Madras quashed the order dated 29.12.2023, challenging the imposition of GST on trade payables and employee benefit expenses by the petitioner. The matter is remanded for reconsideration, allowing the petitioner to respond to the show cause notice and providing a reasonable opportunity for a personal hearing. The writ petition is disposed of with no costs.