In a recent ruling, the Madras High Court ordered a fresh hearing for the petitioner because the Goods and Service Tax consultant failed to notify about the proceedings and had already paid 90% of the disputed tax amount.
R.B Traders, the petitioner challenged an order issued by the Deputy Commercial Tax Officer (Respondent 1) seeking to have it quashed as it was allegedly contrary to law.
The petitioner submitted that notices and communications were uploaded in the “Additional Notices Column” of the GST portal. As a small business entity, they were unaware of these notices.
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The petitioner relied on a consultant for GST compliance who failed to notify or update them about the proceedings which led to the petitioner missing the opportunity to file a reply within the stipulated timeframe.
It was also argued that the impugned order was passed without providing an opportunity for a personal hearing, which was stated to be a violation of the principles of natural justice. The petitioner claimed they had already deposited approximately 90% of the tax dues before the authority.
Justice Krishnan Ramasamy reviewed the documents and pleadings and found that the order was issued without granting a personal hearing, thus violating the principles of natural justice.
The court observed that the petitioner already deposited 90% of the disputed tax and held that it was essential to provide the petitioner with an opportunity to present their case on merits and by the law.
The court set aside the impugned orders and lifted the attachment order on the petitioner’s bank accounts. The court directed the petitioner to submit their reply/objection along with any required documents to the respondent within two weeks from the date of receipt of the court’s order. The writ petition was disposed of with directions.
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