GST Portal Credentials only Known to Accountant who failed to inform Proceedings: Madras HC Directs Challenge to Ex-Parte Order Before Appellate Authority [Read Order]

In case of the accountant’s failure to inform the Goods and Services Tax ( GST ) proceedings which led to the ex-parte order, the Madurai bench of Madras High Court has directed the petitioner to approach the appellate authority.

The petitioner, a small businessman, contended that he had engaged a part-time accountant due to his lack of expertise in accounting and GST compliance. The accountant was entrusted with all GST-related responsibilities, including return filings and communication with the department.

However, the petitioner remained unaware of the assessment proceedings, as the GST portal credentials and the email ID associated with departmental communications were exclusively managed by the accountant.

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As a result of the accountant’s failure to inform or act on several show-cause and hearing notices issued by the tax authorities between May and July 2024, the assessment culminated in an ex-parte order. The petitioner approached the High Court seeking relief on grounds of procedural lapse and lack of knowledge of the ongoing proceedings.

On the contrary, the government advocate argued that due process had been followed and that multiple notices were duly issued before the assessment order was finalized. He further stated that the petitioner has a statutory remedy available under Section 107 of the GST Act, 2017, before the Deputy Commissioner (GST Appeals), state tax.

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Justice Vivek Kumar Singh, considering the available appellate remedy and the peculiar facts of the case, declined to interfere with the assessment order but granted liberty to the petitioner to file an appeal within two weeks.

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The Court also directed the appellate authority to entertain the appeal without reference to the limitation period and to dispose of it within three months. Meanwhile, the tax department was instructed to maintain the status quo during the pendency of the appeal.

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