GST SCN and Assessment Order sent to Old Address Instead of New Address: Madras HC Sets aside Order [Read Order]

The Madras High Court has set aside the assessment order due to the Goods and Service Tax, the show cause notice and the assessment order were sent to the outdated address, while only the recovery notice was sent to the updated address. This lack of proper notice and failure to provide a personal hearing constituted a violation of natural justice.

The present Writ Petition seeks the issuance of a Writ of Certiorari to review and quash the impugned order in original, OIO.No.44/2022 ST (AC) dated 21.09.2022, issued by the second respondent.

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Counsel for the petitioner, Mr. C. Derrick Sam, stated that the petitioner’s office was originally located at 28, Indra Nehru Street, Ganapathy, Coimbatore - 641 006 and was later relocated to 295, MM & Sons Campus, Uppilipalayam Main Road, Sowripalayam, Coimbatore - 641 028. Form GST REG-06, issued on 02.08.2018, confirming this address change, was presented to the Court.

Mr. A. P. Srinivas, Senior Standing Counsel for the first respondent, admitted that a show cause notice dated 21.10.2021 was sent to the old address, despite the new address being available in the Income Tax Return. All subsequent communications, including the assessment order dated 21.09.2022, were also sent to the old address and returned undelivered. A recovery notice was eventually sent to the new address on 29.12.2023. The petitioner had no knowledge of the earlier notices due to the incorrect address, leading to a claim that the impugned order violated principles of natural justice.

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Upon reviewing Form GST REG-06, the Senior Standing Counsel acknowledged that communications, including the show cause notice and the assessment order, were sent to the old address and not updated in accordance with the GST Form.

Justice Krishnan Ramasamy noted that there was no dispute regarding the facts. However, the show cause notice and the assessment order were sent to the outdated address, while only the recovery notice was sent to the updated address. This lack of proper notice and failure to provide a personal hearing constituted a violation of natural justice.

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The Court set aside the impugned order dated 21.09.2022. The petitioner is directed to submit their reply/objection along with necessary documents within two weeks. The respondent must then consider the reply and issue a 14-day clear notice for a personal hearing. The respondent will pass appropriate orders on merits and in accordance with the law after hearing the petitioner.

The Writ Petition was allowed with no order as to costs. The connected miscellaneous petitions were closed.

To Read the full text of the Order CLICK HERE 

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