2025 (1) TMI 1133 - HC - GST

HC quashes GST assessment order for excess Input Tax Credit claim due to natural justice violation

The HC set aside an assessment order for excess Input Tax Credit claim under GST, finding violation of natural justice principles as the petitioner was ... Violation of principles of natural justice - Service of SCN - impugned order is challenged on the premise that the notices and orders were uploaded under the “view additional notices and orders” tab on the GST Portal, thereby, the petitioner was unaware of the initiated proceedings and thus unable to participate in the adjudication proceedings - Challenge to impugned order passed by the respondent relating to the assessment year 2018-19 - excess claim of Input Tax Credit over and above that of the tax paid under Reverse Charge Mechanism - the petitioner is ready and willing to pay 25% of the disputed tax and that they may be granted one final opportunity before the adjudicating authority to put forth their objections. HELD THAT:- The impugned order is set aside and the petitioner shall deposit 25% of the disputed tax within a period of four (4) weeks from the date of receipt of a copy of this order. On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondents and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. Petition disposed off. In the case before the Madras High Court, the petitioner, engaged in trading activities in batteries and registered under the Goods and Services Act, 2017, challenged an impugned order dated 12.01.2024 concerning the assessment year 2018-19. The issue arose from an excess claim of Input Tax Credit beyond the tax paid under the Reverse Charge Mechanism. A Show Cause Notice was issued on 31.10.2023, but the petitioner neither replied nor attended the personal hearing on 15.11.2023, leading to the confirmation of the proposal against them.The petitioner contended that they were unaware of the proceedings as the notices were uploaded under the 'view additional notices and orders' tab on the GST Portal. They sought an opportunity to address the discrepancies, citing a precedent from M/s. K. Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise.The court, acknowledging the petitioner's readiness to pay 25% of the disputed tax, set aside the impugned order. The petitioner is required to deposit this amount within four weeks and submit objections with supporting documents within the same timeframe. The respondents are to consider these objections and provide a hearing. Failure to comply will result in the restoration of the impugned order. The writ petition was disposed of without costs, and related miscellaneous petitions were closed.