The Madras High Court has nullified and ordered reconsideration with a 10% pre-deposit requirement in the matter where alleged failure of the Goods and Services Tax ( GST ) auditor to notify the petitioner of the proceedings, leading to their non-response to notices from GST authorities.
The petitioner, S M J Marble & Granite who sells marble, granite, and related items, got into trouble after an audit and getting a report on September 23, 2023. They got a notice on September 27, 2023, saying they didn’t reply because their auditor didn’t tell them about the situation. Because of this, the impugned order was given.
The petitioner’s counsel submitted that the petitioner was not granted an opportunity to be heard before the issuance of the impugned order. They request a chance to present their case and propose remitting 10% of the disputed tax demand as a condition for reconsideration.
Representing the respondent, Mr. C. Harsha Raj, Additional Government Pleader, asserts that the petitioner had ample opportunities to respond to both the audit observations and the show cause notice.
Upon examination of the documents, a single bench of Justice Senthilkumar Ramamoorthy observed that the petitioner failed to engage in the proceedings leading to the impugned order, attributing their non-participation to negligence in responding to received notices. However, given the petitioner’s failure to contest the tax demand on its merits, the court deems it just and appropriate to afford them an opportunity to do so under certain conditions.
Consequently, the impugned order dated 28.12.2023 was set aside, and the matter is remanded to the respondent for reconsideration, subject to the condition that the petitioner remits 10% of the disputed tax demand within two months from the receipt of this order.
The petitioner is also granted permission to submit a reply to the show cause notice within the same period. Upon fulfilment of these conditions, the respondent is directed to provide the petitioner with an opportunity, including a personal hearing, and subsequently issue a fresh order within two months.
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