Failure to issue ASMT 10 Notice/Intimation for GST Registration Cancellation: Madras HC demands Opportunity for Personal Hearing [Read Order]

In a recent ruling, the Madras High Court set aside an order for cancellation of GST registration and remanded the matter for reconsideration. The writ petition challenged the order on the grounds that the petitioner did not receive the required ASMT 10 notice/intimation before the cancellation of their GST registration.

The petitioner, Tvl. Bashir Maligai Stores, argued that their GST registration was cancelled by an order dated 21.10.2020, with effect from 31.12.2017. Consequently, the petitioner did not monitor the GST portal and was unaware of the proceedings, which led to the tax demand.

S. Rajendran, counsel for the petitioner, submitted that the petitioner did not receive notice in Form ASMT 10 or an intimation. He emphasised that the cancellation of the GST registration in 2020 made it unreasonable to expect the petitioner to monitor the portal for notices.

C. Harsha Raj, the Additional Government Pleader representing the respondent, contended that the impugned order referenced a notice in Form ASMT 10 and a show cause notice dated 29.09.2023. He asserted that the principles of natural justice were followed.

The petitioner has placed on record evidence that his GST registration was cancelled on 21.10.2020 with effect from 31.12.2017. In those circumstances, the submission that the petitioner was not monitoring the portal is not entirely devoid of merit. At the same time, it is noticeable that the petitioner was put on notice about the discrepancies in returns by issuing a notice in Form ASMT 10.

The single bench of Justice Senthilkumar Ramamoorthy found merit in the petitioner’s submission regarding the lack of monitoring of the GST portal. The court observed that the petitioner had not received the ASMT 10 notice, a critical procedural requirement.

The court set aside the impugned order and remanded the matter for reconsideration. The petitioner was directed to remit 10% of the disputed tax demand within three weeks from the date of receipt of a copy of the order. The petitioner was also permitted to submit a reply to the show cause notice within this period.

Upon receipt of the petitioner’s reply and confirmation of the payment, the respondent was instructed to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh order within three months from the date of receipt of the petitioner’s reply.

To Read the full text of the Order CLICK HERE

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