Case Law Details
Navbharat Boilers Vs Assistant Commissioner (Madras High Court)
The case of Navbharat Boilers vs Assistant Commissioner at the Madras High Court centers on a dispute regarding alleged wrongful availment of Input Tax Credit (ITC) by the petitioner, a registered entity under GST enactments. The petitioner challenges an order dated 16.08.2023, citing a breach of principles of natural justice.
The petitioner contends that they were not provided a reasonable opportunity to contest the tax demand on its merits. Despite references to a personal hearing in the impugned order, the petitioner asserts that no such hearing was conducted. Furthermore, they claim that the show cause notice and the impugned order were only uploaded on the GST portal, not communicated through any other mode.
On the other hand, the government pleader representing the respondent argues that sufficient opportunity was provided to the petitioner before issuing the impugned order. The impugned order confirms the tax demand due to the petitioner’s failure to respond to the show cause notice or participate in the personal hearing.
Considering the circumstances, the court sets aside the impugned order and remands the matter for reconsideration. However, it imposes the condition that the petitioner remits 10% of the disputed tax demand within two weeks from the date of receipt of the order. Additionally, the petitioner is allowed to submit a reply to the show cause notice within the same period.
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