2025 (4) TMI 1509 - HC - GST

High Court Upholds Tax Dispute, Orders Reassessment and Fair Hearing for Petitioner Under Procedural Fairness Principles

HC allowed writ petition challenging tax assessment order. Court found merit in petitioner's claim of insufficient opportunity and TDS credit mismatch ... Challenge to assessment order - order of assessment for the year 2022-2023 was passed without providing sufficient opportunity to the petitioner - violation of principles of natural justice - HELD THAT:- This Court, after considering the submissions of both parties, remands the matter back to the respondent for fresh consideration. The respondent is directed to review the petitioner's case, taking into account the concerns raised regarding the TDS credit mismatch and to pass appropriate orders on merits and in accordance with law, after giving due opportunity of hearing to the petitioner, within a period of four months from the date of receipt of a copy of this order. Petition allowed. The Madras High Court, presided by Justice Vivek Kumar Singh, allowed the writ petition challenging the respondent's assessment order dated 25.08.2023 for AY 2022-2023. The petitioner contended violation of the principles of natural justice due to insufficient opportunity during assessment and raised a TDS credit mismatch issue caused by the Nanguneri Panchayat Union crediting TDS to an old cancelled GSTIN instead of the current one, resulting in discrepancies between Form GSTR 7 and Form GSTR 1. The petitioner's rectification application filed on 24.09.2023 was rejected on the ground of delay, which the petitioner attributed to the respondent's inordinate delay.The respondent argued that adequate opportunity was provided and the mismatch arose from the petitioner's error. The Court found merit in the petitioner's submissions, emphasizing the need for due opportunity and proper consideration of the TDS credit issue. The Court remanded the matter to the respondent for fresh consideration and directed that the petitioner be heard and appropriate orders be passed on merits within four months. The writ petition was allowed without costs.