In a recent decision, the Telangana High Court, chaired by Chief Justice Ujjal Bhuyan and Justice C.V. Bhaskar Reddy, set aside the contested order of the Assistant Commissioner (ST) and issued re-adjudication.
In this case, due to the petitioner’s inability to use the portal as a consequence of the department’s cancellation of the GST registration, the petitioner in this matter didn’t receive the department’s show reason notice or reminder notice.
The Writ Petition was lodged in opposition to the Assistant Commissioner (ST)’s decision which confirmed an excess claim of Rs. 41,10,622 in Input Tax Credits (ITC) under the Central Goods and Services Tax (CGST) and an equal amount under the State Goods and Services Tax (SGST).
According to the judgement issued by the same court on 06.09.2022, Section 75 of the CGST Act’s sub-section (4) addresses two situations. At first, when a request is filed in writing by the individual who is liable for the tax or penalty, an opportunity for a personal hearing is permitted.
Second, whenever an adverse decision is being contemplated against that person, a time for a hearing is offered.
Prahlad Gadipelli, counsel for the petitioner submits that no notice of personal hearing was issued to the petitioner.
L. Venkateswar Rao, a counsel for the respondents, submitted a copy of the show-cause notice accompanying reminder issued to the petitioner on 31.04. 2021 and 02.06.2021 respectively. He also claimed that the contested order had already been uploaded in adherence to Section 169 of the CGST Act notice-serving common portal method.
However, the petitioner’s counsel asserts that on 19.01.2021, the petitioner’s GST registration was cancelled. The petitioner was unable to access the common portal as a consequence.
After considering both the sides, the bench set aside the impugned order and instructed to initiate a fresh adjudication. Thereafter the court directed that the Assistant Commissioner (ST), shall pass appropriate order after giving due opportunity of hearing to the petitioner, including personal hearing.
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