2024 (7) TMI 262 - HC - GST

Confirmation of demand proposed in the notice in Form GST DRC 01 dated 09.01.2023 - petitioner has failed to file the reply in time - petitioner seeking one opportunity to explain the case - principles of natural justice - HELD THAT - The petitioner can be given one opportunity to explain the case on merits subject to the petitioner depositing 25% of the disputed tax from the Electronic Cash Register within a period of 30 days from the date of receipt of a copy of this order. The impugned order which stands quashed in this order shall be treated as Addendum to the show cause notice issued to the petitioner. Subject to the petitioner complying with the above requirements along with reply within a period of 30 days the respondent shall proceed to pass fresh orders on merits and in accordance with law after hearing the petitioner. It is expected that fresh orders shall be passed within a period of three months from today. The writ petition is disposed off.

Summary

Issues involved:
Challenge to impugned order for Assessment Year 2020-2021 due to failure to reply in time.

Analysis:
The petitioner challenged the impugned order dated 12.05.2023 confirming the demand proposed in the notice in Form GST DRC-01, as the petitioner failed to file a timely reply. The petitioner sought an opportunity to explain the case on merits. The respondent argued that the Writ Petition lacked merits citing decisions of the Hon'ble Supreme Court. The Court considered arguments from both sides.

The Court, after considering submissions, decided to grant the petitioner one opportunity to explain the case on merits. The petitioner was required to deposit 25% of the disputed tax from the Electronic Cash Register within 30 days. The impugned order was quashed, to be treated as an Addendum to the show cause notice. The respondent was directed to pass fresh orders on merits within three months after the petitioner complies with the requirements and submits a reply within 30 days.

In conclusion, the Writ Petition was disposed of with the above observations, with no costs imposed. Connected Miscellaneous Petitions were closed as a result of this judgment.