In a recent ruling, the Madras High court has granted the personal hearing with pre-deposit against the order issued for short payment of Goods and Services Tax ( GST ) due to excess input tax credit ( ITC ) claim. The court noted that the petitioner was provided no hearing.
The petitioner, M/s Summit Exim, in its petition submitted that while an intimation in ASMT-10 was issued on May 2, 2023, and a notice in DRC-01 followed on August 28, 2023, along with an opportunity for a personal hearing on September 7, 2023, these communications were uploaded only on the GST portal.
It was submitted that they were unaware of the proceedings due to a lack of direct service via Registered Post with Acknowledgment Due (RPAD) or tender, resulting in their inability to respond or participate in the adjudication process.
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Relying on a precedent set in M/s. K. Balakrishnan, Balu Cables v. Assistant Commissioner of GST & Central Excise, the petitioner requested the matter be remanded for fresh consideration, committing to deposit 25% of the disputed tax. The department’s counsel raised no objection to this request.
Justice Mohammed Shaffiq set aside the impugned order and directed the petitioner to deposit 25% of the disputed tax within four weeks.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
The order of assessment was directed to be treated as a show cause notice, and the petitioner must submit objections with supporting evidence within the same timeframe. The adjudicating authority was instructed to consider the objections and pass a reasoned order after granting the petitioner a fair hearing.
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