{"id":2681,"date":"2025-02-22T11:55:10","date_gmt":"2025-02-22T06:25:10","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=2681"},"modified":"2025-02-22T11:55:10","modified_gmt":"2025-02-22T06:25:10","slug":"order-imposing-demand-with-interest-and-penalty-to-be-set-aside-as-lower-authority-ignored-taxpayers-request-for-tax-adjustment-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/order-imposing-demand-with-interest-and-penalty-to-be-set-aside-as-lower-authority-ignored-taxpayers-request-for-tax-adjustment-hc","title":{"rendered":"Order Imposing Demand With Interest and Penalty to Be Set Aside as Lower Authority Ignored Taxpayer&#8217;s Request for Tax Adjust..."},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000388940\/order-imposing-demand-with-interest-and-penalty-to-be-set-aside-as-lower-authority-ignored-taxpayers-request-for-tax-adjustment-hc\">On Time Services Versus Union of India (2025) 26 Centax 471 (All.) (2025) 26 Centax 471 (All.)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Arun Bhansali<\/strong>, CJ. &amp; <strong>Vikas Budhwar<\/strong>, J.<\/li>\n<li><strong>S\/Shri Pranjal Shukla<\/strong> &amp; <strong>Gauransh Mishra<\/strong> for the Petitioner.<\/li>\n<li><strong>S\/Shri Ankur Agarwal<\/strong>, S.C., <strong>Gopal Verma<\/strong> &amp; <strong>Krishna Agarawal<\/strong> for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner, a registered taxpayer under the Goods and Services Tax (GST) regime, was issued a show cause notice under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act), by the Deputy Commissioner, State Tax, Prayagraj, for the period April 2018 to March 2019. The notice sought to impose a tax demand along with interest and penalty. In response, the petitioner submitted a reply contesting the demand and specifically requested that the liability for CGST and SGST be adjusted against the available Integrated Goods and Services Tax (IGST) balance. The adjudicating authority, however, proceeded to confirm the demand without addressing the adjustment request, leading the petitioner to challenge the order before the Allahabad High Court through a writ petition.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble Allahabad High Court held that the impugned order and demand notice must be set aside to the extent that the petitioner\u2019s request for tax adjustment was not considered. The court observed that while the adjudicating authority had determined the demand, it failed to examine the petitioner\u2019s plea for adjustment, which constituted a procedural lapse. Consequently, the matter was remanded for reconsideration, directing the authority to adjudicate the request for adjustment of CGST and SGST against the IGST balance and, if accepted, to modify the consequential interest and penalty accordingly.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: On Time Services Versus Union of India (2025) 26 Centax&hellip;<\/p>\n","protected":false},"author":5,"featured_media":2697,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-2681","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Order Imposing Demand With Interest and Penalty to Be Set Aside as Lower Authority Ignored 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