The Madras High Court accepted the discharge summary from the hospital as evidence for non-participation in the GST ( Goods and Services Tax ) proceedings and set aside the order on 10% pre-deposit condition.
The bench of Justice Senthilkumar Ramamoorthy of the High Court found that the GST proposal was confirmed due to the petitioner’s failure to respond to the show cause notice. Considering the affidavit’s claims regarding the assessee’s non-participation and the hospital discharge summary from VS Hospital, the Court decided that justice required re-consideration under new terms.
The case began when A B Impex petitioned the court, arguing that it was not given a reasonable opportunity to contest the tax demand on its merits. The petitioner claimed that its business suffered significant losses due to the Covid-19 pandemic. Additionally, it was stated that the petitioner was seriously ill during the assessment period and, as a result, was unable to follow up with its accountant and participate in the proceedings.
The counsel for A B Impex argued that the confirmed GST proposal arose from a mismatch between the petitioner’s GSTR-3B returns and the auto-populated GSTR-2A. She asserted that this mismatch would not exist if the correct data were considered from the auto-populated GSTR-2A. On instructions, she agreed to remit 10% of the disputed tax demand as a condition for remand.
Mr. C. Harsha Raj, the Additional Government Pleader, representing the respondent, argued that the principles of natural justice had been followed. He noted that an ASMT-10 notice was issued on 12.05.2023, followed by a show cause notice dated 19.07.2023, and several personal hearing notices.
The impugned GST demand order was set aside. The Court mandated that A B Impex remit 10% of the disputed GST demand and was allowed to submit a reply to the show cause notice within this period. Additionally, the bank attachment previously was lifted.
Ms.C.Rekhakumari and Mr.C.Harsha Raj, AGP (T) appeared for the assessee and the GST Department ( respondents).
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