2024 (7) TMI 360 - HC - GST

Violation of principles of natural justice - order challenged on the ground that the petitioner did not have a reasonable opportunity - HELD THAT - On perusal of the impugned order it is evident that the confirmed tax demand relates to the discrepancies between the Input Tax Credit (ITC) claimed by the petitioner in Form GSTR 3B on comparison with the GSTR 2B. Such tax demand was confirmed without the petitioner being heard. The petitioner has also agreed to the payment of 10% of the disputed tax demand as a condition for remand. In these circumstances it is just and necessary that the petitioner be provided an opportunity. The impugned order is set aside on condition that the petitioner remits 10% of the disputed tax demand as agreed to within a period of two weeks from the date of receipt of a copy of this order - Petition disposed off.

Summary

Issues:
Challenge to an order on the ground of lack of reasonable opportunity.

Analysis:
The petitioner, engaged in the business of supplying water purifiers and R.O. systems, received a notice regarding discrepancies in returns. The petitioner claims they were unable to respond to the intimation or show cause notice as it was uploaded on the GST portal without being served through any other mode. The petitioner's counsel argues that detailed explanations were provided upon receiving the notice and is willing to remit 10% of the disputed tax demand.

The Government Advocate representing the respondent acknowledges receipt of notice and argues that the petitioner had multiple opportunities to contest the tax demand. The confirmed tax demand pertains to discrepancies in Input Tax Credit claimed by the petitioner, confirmed without a hearing. The petitioner agrees to pay 10% of the disputed tax demand for remand, leading the court to set aside the impugned order on the condition of remitting the agreed amount within two weeks.

The court directs the petitioner to submit a reply to the show cause notice within the given period. Upon satisfaction of receiving the remittance and the petitioner's reply, the respondent is instructed to provide a reasonable opportunity, including a personal hearing, and issue a fresh order within two months. The writ petition is disposed of without any costs, and connected miscellaneous petitions are closed.