In a recent ruling, the Madras High Court directed the GST ( Goods and Services Tax ) department for fresh adjudication in the Goods and Services matter, the notices were uploaded only on the GST portal and a proper hearing opportunity was not given.
The petitioner- assessee, Zen Machine Tools, challenged an order from the GST department that demanded payment of tax, penalty, and interest totaling ₹1,86,476 for the assessment years 2021 and 2022.
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Adv. Rupesh Sharma, the assessee’s counsel submitted that the notices and related communications were only uploaded under the “View Additional Notices and Orders” section of the GST portal, and they were unaware of these notices, leading to a failure to respond in time.
The petitioner only became aware of the situation after receiving a bank attachment notice on February 15, 2024, by which time the disputed tax amount had already been recovered from their account. The petitioner claimed that the impugned order violated the principles of natural justice as they were not given a fair opportunity to be heard.
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The revenue counsel represented by V. Prashanth Kiran argued that notices for a personal hearing were uploaded on the GST portal, and it was the petitioner’s responsibility to respond. The counsel highlighted that the tax amount had already been recovered.
A single bench of Justice Krishnan Ramasamy considered both sides arguments and noted that the disputed tax had already been recovered. The court observed that the impugned order passed without hearing the petitioner violated the natural principles of justice. The court considered both side’s arguments and noted that the disputed tax had already been recovered.
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Thus, the court set aside the impugned order and remanded the matter for fresh adjudication. It ordered to lift the bank attachment and the respondent bank was instructed to defreeze the assessee’s account immediately. Therefore, the writ petition was disposed of.
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