GST Notice uploaded in “View Additional Notices and Orders” tab Portal, Unaware of Proceedings: Madras HC remands for Reconsideration on Pre-deposit [Read Order]

The Madras High Court directed the petitioner 10% pre-deposit for remanding the matter for reconsideration. The petitioner was unaware about the Goods and Services Tax ( GST ) proceedings as the notice was uploaded in  “View Additional Notices and Orders” tab in the GST Portal

The petitioner claimed that a show cause notice dated 19.05.2023 was solely uploaded on the "View Additional Notices and Orders" tab on the GST portal without any other mode of service, rendering them unaware of the ensuing proceedings leading to the impugned order.

Mr.B.Sivaraman, the Counsel for the petitioner citing a previous court order, Sakthi Steel Trading v. The Assistant Commissioner (ST), W.P.No.4122 of 2022, highlighted the statutory obligation for GST authorities to serve notices through specified modes if the taxpayer fails to respond initially. Additionally, it's argued that only one opportunity for a personal hearing was granted instead of the prescribed three.

Mr.T.N.C.Kaushik, representing the respondent, acknowledged notice and assertd that the impugned order was issued following the show cause notice and a subsequent reminder for a personal hearing.

A single bench of Justice Senthilkumar Ramamoorthy noted that Section 169 of applicable GST enactments mandating notice service through specified modes. Despite this, the confirmed tax demand, relating to Input Tax Credit ( ITC ) on a car purchase, was issued without the petitioner's hearing, hindering their ability to justify the business necessity of the purchase.

Consequently, the impugned order dated 20.07.2023 was set aside, and the matter was remanded for reconsideration, contingent upon the petitioner remitting 10% of the disputed tax demand within two weeks.

The petitioner was allowed to respond to the show cause notice within the same period. Upon receipt of the reply and confirmation of the remittance, the respondent is directed to provide a reasonable opportunity for a personal hearing and issue a fresh order within two months.

To Read the full text of the Order CLICK HERE

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