No GST Input Mismatch Details or Hearing Given: Madras HC directs to Re-do Assessment Order on 10% Deposit [Read Order]

The Madras High Court has quashed a Goods and Services Tax ( GST ) assessment order on the ground that the petitioner was not provided with the details of the alleged input tax credit ( ITC ) mismatch, nor given an opportunity of personal hearing before the order was passed.

The petitioner, M/s. Alfa Flugs Electrodes, had filed the writ petition challenging the assessment order, contending that the core issue was an input tax credit mismatch. However, the respondent failed to provide any specific details of such mismatch.

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Moreover, the assessment order was uploaded on the GST portal without serving a physical copy, thereby depriving the petitioner of actual knowledge of the order. It was only when the department issued a distraint notice dated 08.04.2025 to recover the dues that the petitioner became aware of the assessment.

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Recognising the procedural lapses and lack of opportunity afforded to the petitioner, the Justice S. Srimathy held that the assessment order could not be sustained.

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At the same time, to safeguard the interest of the revenue, the Court directed the petitioner to deposit 10% of the tax demand within two weeks of receiving a copy of the court’s order.

The respondent GST authorities was directed to lift the bank attachment and re-do the assessment after receiving the payment and granting the petitioner a proper opportunity to respond. The reassessment process must be completed within a period of three months.

Accordingly, the court disposed of the petition.

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To Read the full text of the Order CLICK HERE

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