GST Order not valid as assessee was unaware of proceedings matter remanded back by HC

ORDER

1. An Order-in-Original dated 27.12.2022 is challenged. The petitioner asserts that he was unaware of proceedings culminating in the order dated 27.12.2022 since the DRC 7 was uploaded on the portal only on 11.01.2024.

2. Learned counsel for the petitioner referred to the disputed tax demand and pointed out that the total tax demand is a sum of Rs.1,20,90,863/-. He also submits that a sum of more than Rs.8,00,000/- was remitted on 11.04.2024 under Form GST DRC – 03. On instructions, he submits that the petitioner agrees to remit a further sum of Rs.7,00,000/- as a condition for remand.

3. On perusal of the impugned order, it is evident that the tax proposal pertained to the belated filing of returns, the difference between the petitioner’s GSTR 1 and 3B returns and the difference between the petitioner’s GSTR 3B returns and the auto populated GSTR 2A. The order discloses that the petitioner did not participate the proceedings. In these facts and circumstances, it is just and necessary that the petitioner be provided an opportunity to contest the tax demand by putting the petitioner on terms.

4. For reasons set out above, impugned order dated 27.12.2022 is set aside on condition that the petitioner remits an aggregate sum of Rs.15,00,000/- towards the disputed tax demand within two weeks from the date of receipt of a copy of this order. The petitioner is also permitted to submit a reply to the show cause notice within the aforesaid period. Subject to receipt of the petitioner’s reply and on being satisfied that a sum of Rs.15,00,000/- 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 three months from the date of receipt of a copy of this order.

5. W.P.No.6962 of 2024 is disposed of on the above terms. No costs. Consequently, W.M.P.Nos.7762, 7764 and 7766 of 2024 are closed.