2024 (10) TMI 1606 - HC - GST

Tax Authority's Order Invalidated: Procedural Flaws Require Fresh Hearing and Fair Opportunity for Taxpayer to Present Evidence

ZAMA & CO. rep. by its Partner Mr. Zubair Ahmed Kondalam Versus The Deputy State Tax Officer, (Formerly Known as Deputy Commercial Tax Officer), Chennai

ZAMA & CO. rep. by its Partner Mr. Zubair Ahmed Kondalam Versus The Deputy State Tax Officer, (Formerly Known as Deputy Commercial Tax Officer), Chennai - ... Issues:Challenge to order dated 23.04.2024 and rejection orders dated 10.05.2024 and 27.08.2024, violation of principles of natural justice.Analysis:The petitioner, an assessee, received Form DRC-01 notice for availing excess ITC for the tax period April 2018 to March 2019. Due to the Authorized Person's illness, the petitioner couldn't reply immediately. The excess ITC was rectified in subsequent monthly returns. Despite this, the respondent passed orders for tax liability and penalty/interest without considering rectification. The petitioner filed applications for rectification on 04.05.2024 and 12.07.2024, but the respondent rejected them without proper consideration. The Court found the orders to be a result of non-application of mind and a violation of natural justice as the petitioner wasn't heard. Consequently, the Court set aside the impugned orders.The Court directed the setting aside of orders dated 23.04.2024 and rejection orders dated 10.05.2024 and 27.08.2024. The matters were remanded to the respondent for fresh consideration. The petitioner was instructed to file a reply with supporting documents within three weeks. The respondent was directed to issue a notice for a personal hearing, allowing the petitioner to present their case. The final decision was to be made in accordance with the law after hearing the petitioner.In conclusion, the Writ Petition was allowed, and no costs were imposed. The connected Miscellaneous Petitions were closed as a result of the judgment.