Case Law Details
Zulaikha Motors Private Limited Vs Assistant Commissioner of GST (Madras High Court)
In a recent development, the Madras High Court has directed a fresh order regarding the payment of 10% of the disputed GST demand in the case of Zulaikha Motors Private Limited versus Assistant Commissioner of GST.
The petition challenges orders related to the assessment period of 2017-2018, citing a breach of principles of natural justice. It asserts that a change in management occurred on 01.01.2024, and the current management was unaware of the proceedings leading to the impugned orders.
Upon examination of the orders, it was found that the petitioner failed to respond to both the intimation and the show cause notice. The tax demand was confirmed due to this failure to respond, with discrepancies between the GSTR 3B, GSTR 1, and GSTR 9 returns cited as the basis for the confirmation. However, no reasons were provided in support of the tax demand, apart from the failure to reply to the show cause notice.
The court, while acknowledging the petitioner’s failure to respond, deemed it just and appropriate to provide an opportunity to contest the tax demand on merits. It ordered the quashing of the impugned orders, with the condition that the petitioner remit 10% of the disputed tax demand within two weeks. Additionally, the petitioner was permitted to submit a reply to the show cause notice within the same period. Upon receipt of the reply and confirmation of the remittance, the respondent was directed to provide a reasonable opportunity for a personal hearing and issue fresh orders within two months.
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