GST Order States Non-Reply to SCN Despite Responding: Madras HC sets aside Order [Read Order]

The Madras High Court has set aside a GST order that incorrectly stated the petitioner had not replied to a Show Cause Notice ( SCN ), despite evidence of a reply. The court observed that the reply of the assessee to SCN was not considered by the GST department while issuing the GST order.

The assessee-petitioner, Angalesh Marketing challenged the impugned GST Order-in-Original. This order confirmed the demands proposed in ASMT 10 dated March 24, 2023, and DRC 01 dated December 4, 2023.

The assessee contended that they had replied to the SCN in DRC 01 dated December 4, 2023, on February 27, 2024, and this reply had been duly acknowledged by the officials. However, the impugned GST order incorrectly stated that the petitioner had not responded.

The bench of Justice C. Saravanan stated that “A reading of the impugned order indicates that though the petitioner has replied to the show cause notice in DRC 01 dated 04.12.2023 in SCN No. 04/2023-GST/SUPDT, which was received on 27.02.2024, same has not been considered by the respondent while passing the impugned order dated 15.03.2024.”

Thus, the High court set aside the impugned order and remitted the case back to the respondent to pass fresh orders. The assessee was directed to file a fresh copy of the reply within 15 days of receiving a copy of the court's order and to participate in the proceedings. The GST department was directed to consider the petitioner's reply when passing the new orders. Mr.S.Raja Jeya Chandra Paul and Mr.R.Nanda Kumar Senior Standing Counsel appeared for the assessee and the GST authorities respectively

To Read the full text of the Order CLICK HERE

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