A.B. Impex Vs Deputy State Tax Officer (Madras High Court)
In the case of A.B. Impex vs. Deputy State Tax Officer, the Madras High Court reviewed a petition challenging an order dated December 23, 2023, which confirmed a tax demand due to discrepancies between the petitioner’s GSTR 3B returns and the auto-populated GSTR 2A. The petitioner argued that they were unable to contest the demand due to severe illness and the impact of the COVID-19 pandemic. The Court found that while notices were issued and principles of natural justice were initially followed, the petitioner had not been given a fair opportunity to address the discrepancies. Consequently, the Court set aside the original order, provided the petitioner remits 10% of the disputed tax within fifteen days, and allowed them to submit a response to the show cause notice. The respondent is then directed to offer a personal hearing and issue a fresh order within three months of receiving the petitioner’s reply. The Court also ordered the lifting of the bank attachment previously imposed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
An order in original dated 23.12.2023 is challenged in this writ petition on the ground that a reasonable opportunity was not provided to the petitioner to contest the tax demand on merits. The petitioner asserts that his business suffered heavy losses on account of the Covid-19 pandemic. It is further stated that the petitioner was seriously unwell during the relevant assessment period and, consequently, unable to follow up with the accountant. In those circumstances, it is stated that the petitioner could not participate in proceedings.
