The Madras High Court granted a reasonable opportunity after a 10% pre-deposit, following confirmation of Goods and Service Tax ( GST ) liability due to non-payment or short payment of tax on outward supplies.
The petitioner assails an order dated 30.10.2023 on the ground of breach of principles of natural justice. By asserting that the show cause notice and impugned order were uploaded on the GSTN portal but not communicated to the petitioner through any other mode, the present Writ Petition was filed.
Mr.A.Satheesh Murugan representing the petitioner stated that the petitioner became aware of the assessment order only upon the bank account being attached on 13.03.2024. On instructions, he submits that the petitioner agrees to remit 10% of the disputed tax demand as a condition for remand.
Mr.V.Prasanth Kiran, representing Government Advocate, accepted notice for the respondent. He submits that principles of nature justice were complied with by issuing intimation dated 26.12.2022, show cause notice dated 07.09.2023 and more than one personal hearing notice.
On examining the impugned order, it was clear that the tax proposal pertains to non-payment/short payment of tax on outward supplies. Such a proposal was confirmed because the petitioner failed to reply to the show cause notice. In view of the contention that the petitioner could not participate in proceedings on account of being unaware of the same, the interest of justice warrants that the petitioner be provided an opportunity to contest the tax demand on merits by putting the petitioner on terms.
The single bench of Justice Senthil Kumar Ramamoorthi observed that the impugned order dated 30.10.2023 is set aside on condition that the petitioner remits 10% of the disputed tax demand within a period of two weeks from the date of receipt of a copy of this order. Within the aforesaid period, the petitioner was permitted to submit a reply to the show cause notice. Upon receipt thereof and on being satisfied that 10% of the disputed tax demand was received, the respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within a period of three months from the date of receipt of the petitioner’s reply. On account of the assessment order being set aside, the bank attachment is raised.
The Writ Petition is disposed of, consequently, the connected miscellaneous petitions are closed.
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