HC Sets Aside GST Order, Grants Petitioner Document Presentation Opportunity

Hitachi Systems India Private Limited Vs Union of India (Madras High Court)

The case of Hitachi Systems India Private Limited vs. Union of India before the Madras High Court revolves around the contention that the petitioner was not afforded a fair opportunity to contest a tax demand.

The petitioner, Hitachi Systems India Private Limited, received an intimation regarding alleged defects in January 2023, followed by a show cause notice in March 2023. Despite the petitioner’s responses to these communications, an assessment order was issued in December 2023, confirming the tax demand. The petitioner challenged this order on the grounds of inadequate opportunity to address the alleged defects.

During the proceedings, the petitioner’s counsel highlighted specific defects in the impugned order, emphasizing the lack of clarity and the petitioner’s inability to respond adequately due to missing information. The court observed discrepancies in the assessment process, noting that the order was issued without affording the petitioner a reasonable opportunity to present relevant documents.

While acknowledging that the petitioner had received prior notices and opportunities to respond, the court deemed it just and appropriate to set aside the impugned order and remand the matter for reconsideration. However, the court imposed a condition requiring the petitioner to remit 10% of the disputed tax demand within a specified period.

GST order was issued without affording the petitioner a reasonable opportunity to present relevant documents, court set aside the impugned order and remand the matter for reconsideration.