GST Dept Fails to Serve Assessment Order to New Registered Office Despite Being Informed: Madras HC Quashes Attachment Order Issued Later [Read Order]

In a recent ruling, the Madras High Court quashed an attachment order issued by the GST Department after observing that the department failed to serve the assessment order at the petitioner’s newly registered office despite being informed.

Zest Buildtek Promotors, the petitioner is a partnership firm and has shifted its registered office to a new address. The change of address was informed to the GST authorities via letters dated 29.11.2022 and 19.12.2022.

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The petitioner requested a certified copy of the assessment order from the GST authorities in the letters. The GST authorities did not respond to these requests or provide a copy. The GST department issued an attachment letter.

Despite the petitioner’s repeated communications stating the change of address and requesting the assessment order, the GST authorities failed to do anything or confirm proper service. Aggrieved by not getting a copy of the assessment order, the assessee filed a writ petition.

The petitioner claimed that the GST department never received the assessment order despite several requests. The petitioner’s counsel argued that the service was invalid since it was neither received by them nor their authorized agent.

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The petitioner’s counsel cited judicial precedents that require proper notice under tax laws to be served effectively, failing to do so violated the principles of natural justice. The petitioner’s counsel submitted that the petitioner had deposited Rs. 5 lakh exceeding the pre-condition for filing a statutory appeal and requested the court to allow them to file a statutory appeal as the procedural lapses by the GST Department had prevented them from doing so earlier.

On the other hand, the GST department argued that the assessment order was served at the new address and submitted acknowledgment bearing the petitioner’s stamp as evidence making it a valid service under the General Clauses Act.

Justice Senthilkumar Ramamoorthy observed that the petitioner had repeatedly requested a certified copy of the assessment order through communications dated 29.11.2022 and 19.12.2022 stating the change of address and these requests were ignored by the GST authorities.

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The court also rejected the department's argument due to the absence of substantive proof showing that the order was served to the petitioner at the updated address. The court explained the importance of valid service of notices as a precondition for initiating recovery actions.

So, the court held that the GST Department’s failure to serve the assessment order at the new registered office address made their actions procedurally flawed. The court allowed the petitioner to file a statutory appeal within two weeks and quashed the attachment order.

To Read the full text of the Order CLICK HERE

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