Order issued without considering GST Annual Return in Form GSTR 9: Madras HC directs Re-adjudication [Read Order]

The Madras High Court has directed the State Tax Officer ( STO ) to re-adjudicate a demand order issued to the petitioner for not considering the GST ( Goods and Services Tax ) annual return in Form GSTR-9 filed on 30.09.2020 for the assessment period 2018-19.

The writ petition was filed by Tvl. Sri Sakthi Steel challenging a GST demand order issued against them on February 28, 2023. The petitioner argued that the order, which stemmed from proceedings initiated by a show cause notice dated December 13, 2022, failed to consider their annual return filed for the 2018-19 assessment period.

The petition further claimed that the petitioner remained unaware of these proceedings because the department only uploaded the show cause notice and the impugned order on the GST portal, without any other form of communication.

N.Chandirasekar, counsel for the petitioner, referred to the annual return in Form GSTR 9 and argued that such a return was filed on 30.09.2020 with regard to assessment period 2018-19. Therefore, he pointed out that, in spite of filing this return, it was recorded in the impugned order that the annual return had not been filed.

K. Vasanthamala, representing the respondents, acknowledged that the impugned order was preceded by an intimation, followed by a show cause notice and a personal hearing notice.

Justice Senthilkumar Ramamoorthy observed that the petitioner has placed on record the annual return in Form GSTR 9. The impugned order had imposed a late fee and penalty on the petitioner for failing to file the annual return for the 2018-19 assessment period.

The single bench found that the order was issued without considering the annual return filed by the petitioner. This necessitated a reconsideration of the case.

The Madras High court set aside the impugned order, and the matter was remanded for reconsideration. The respondent was directed to provide the petitioner with a reasonable opportunity to be heard, including a personal hearing, and thereafter issue a fresh order within three months from the date of receipt of a copy of the order.

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