Assessee not absolved from Responsibility to monitor GST Portal being Registered Person: Madras HC [Read Order]

The Madras High Court observed that the assessee is not absolved from the responsibility to monitor the GST portal being a registered person.

The petitioner assailed an order dated 29.12.2023 on the ground that a reasonable opportunity was not provided to contest the tax demand on merits. The petitioner asserts that he is about 78 years old and was suffering from various illnesses. Consequently, it is stated that he was unable to respond to the show cause notice or participate in proceedings culminating in the order impugned herein.

The counsel for the petitioner submitted that the petitioner would be in a position to respond to each of the five defects dealt with in the impugned order if provided an opportunity and that the petitioner is willing to remit 10% of the disputed tax demand as a condition for remand.

The Government Advocate, pointed out that an audit of the petitioner's books of account was conducted and that the intimation and show cause notice was subsequent to the issuance of the audit report to the petitioner. In these circumstances, he contends that sufficient opportunity was provided to the petitioner.

A Single Bench of Justice Senthilkumar Ramamoorthy observed that “On perusal of the impugned order, it is evident that an audit was conducted and that an audit report was issued. It is also clear that an intimation and show cause notice preceded the impugned order. In these circumstances, the petitioner cannot be absolved of responsibility as a registered person to monitor the GST portal. At the same time, it is noticeable that the tax proposal was confirmed because the petitioner did not submit a reply along with supporting documents. Therefore, albeit by putting the petitioner on terms, the interest of justice demands that the petitioner be provided an opportunity.”

“Therefore, the impugned order dated 29.12.2023 is set aside and the matter is remanded for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a maximum period of three weeks from the date of receipt of a copy of this order. Within the aforesaid period, the petitioner is also permitted to submit a reply to the show cause notice” the Court noted.

To Read the full text of the Order CLICK HERE

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