The Madras High Court nullified a Goods and Services Tax ( GST ) DRC-07 order issued disregarding the assessee’s submitted reply.
The challenge to an order dated 29.12.2023 arised from the petitioner’s contention that their responses to the Show Cause Notice ( SCN ) were disregarded. Following an audit, a SCN was issued on 27.09.2023, to which the petitioner replied on 26.10.2023.
Despite attending a personal hearing on 06.12.2023 and submitting further communication on 20.12.2023, the impugned order was issued on 29.12.2023, confirming the audit findings.
The petitioner’s Counsel asserted that their comprehensive response addressing audit issues and attendance at the personal hearing were overlooked, leading to the erroneous confirmation of audit findings.
The Government Advocate acknowledged receipt of only the reply dated 20.12.2023 but fails to account for the earlier submission dated 26.10.2023, which was acknowledged by the Assistant Commissioner’s office.
Upon examination, the court noted that the petitioner’s responses were not duly considered, rendering the impugned order unsustainable. Accordingly, the court set aside and remanded the matter for reconsideration.
The respondent was directed to provide a reasonable opportunity to the petitioner, including a personal hearing, take into consideration the petitioner’s replies and issue a fresh order within two months from the date of receipt of a copy of the order.
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