2024 (9) TMI 801 - HC - GST

Breach of principles of natural justice - SCN and impugned order were uploaded on the View Additional Notices and Orders tab on the GST portal - wrongful availment of Input Tax Credit (ITC) - HELD THAT - On perusal of the impugned order it is evident that the said order pertains to alleged wrongful availment of Input Tax Credit (ITC). The documents on record include the show cause notice dated 22.06.2023. From the impugned order it appears that a personal hearing notice was issued on 17.07.2023. The impugned order further discloses that the tax demand was confirmed because the petitioner failed to respond to the show cause notice or participate in the personal hearing. In these circumstances albeit by putting the petitioner on terms it is just and necessary to provide the petitioner with an opportunity to contest the tax demand on merits. The impugned order dated 16.08.2023 is set aside and the matter is remanded for reconsideration subject to the 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 by way of remand.

Summary

The High Court of Madras set aside the impugned order due to a breach of natural justice principles. The petitioner, a GST registered person, was not given a fair opportunity to contest a tax demand. The matter is remanded for reconsideration with the condition that the petitioner remits 10% of the disputed tax demand. The respondent must provide a reasonable opportunity for the petitioner to be heard and issue a fresh order within three months of receiving the petitioner's reply. The writ petition is disposed of without costs.