Tax Demand Could Not Be Confirmed Without Providing Opportunity of Personal Hearing to Assessee | HC

Case Details: Sanjai Gandhi v. Deputy Commercial Tax Officer (ST) - [2024] 161 taxmann.com 266 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • Ms Aparna Nandakumar for the Petitioner.
  • V. Prashanth Kiran, Government Advocate (T) for the Respondent.

Facts of the Case

The petitioner was engaged in business of supplying water purifiers and R.O. systems and providing services in relation thereto. The department issued notice to petitioner for discrepancies in Form GSTR-3B and GSTR-2B and it submitted a detailed explanation. However, the demand was confirmed without providing an opportunity of being heard and it filed writ petition against the same.

High Court Held

The Honorable High Court noted that the confirmed tax demand related to discrepancies between the Input Tax Credit (ITC) claimed by the petitioner in Form GSTR-3B on comparison with the GSTR-2B. Such tax demand could not have been confirmed without the petitioner being heard.

Therefore, it was held that the impugned order was to be set aside on condition that the petitioner remits 10% of the disputed tax demand and the petitioner would be permitted to submit a reply to show cause notice. The Court also directed the department to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order.