Accountant's Exit Led to Unaware GST Proceedings: Madras HC allows to Contest Order on Pre-deposit [Read Order]

The Madras High Court permitted contesting the GST assessment order with a 10% pre-deposit despite the assessee's lack of awareness of GST proceedings due to the departure of their accountant.

The assessee M.Sumitha, challenged the GST order on the ground that the petitioner did not have a reasonable opportunity to contest the tax demand on merits. It was claimed that the assesse was not conversant with GST compliances and had entrusted the same to an accountant, who left the employment of the petitioner, the present writ petition was filed.

The counsel of the assessee argued that the assessee couldn't participate in proceedings due to being handicapped after the accountant left. They stated the GST proposal arises from an inadvertent error in GST returns and assured they could explain the discrepancy if given a chance. The counsel agreed, on instructions, to remit 10% of the disputed tax demand for remand.

The respondent’s counsel submitted that the principles of natural justice were complied with by issuing intimation, show cause notice and by issuing multiple personal hearing notices.

Justice Senthilkumar's bench of the Madras High Court, examining the GST assessment order, observed a TDS mismatch between the GSTR 7 filed by the tax deductor and the petitioner's GSTR 3B and GSTR 1 returns. The order was confirmed as the petitioner did not respond to the show cause notice or attend the hearing.

Considering the petitioner's claim of ignorance leading to non-participation, the high court decided to grant the opportunity to contest on a pre-deposit of 10%. The respondent - GST authorities was instructed to provide personal hearing and issue a fresh order on the receipt of the pre deposit.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates