Service of Notice through GST Portal to Assessee whose Registration was Canceled is Invalid: Madras HC
Service of Notice through GST Portal to Assessee whose Registration was Canceled is Invalid: Madras HC
A Single bench of the Madras High Court quashed an order initiated by Revenue against assessee. Revenue had taken action against the assessee for the non filing of returns. Revenue had also canceled the respondent’s GST license citing non response of the assessee for the show cause notice. Due to the non-filing of GST returns, resulting from an error by the petitioner's consultant,...
A Single bench of the Madras High Court quashed an order initiated by Revenue against assessee. Revenue had taken action against the assessee for the non filing of returns. Revenue had also canceled the respondent’s GST license citing non response of the assessee for the show cause notice.
Due to the non-filing of GST returns, resulting from an error by the petitioner's consultant, the respondent canceled the petitioner's GST registration. Subsequently, a show cause notice dated 09.07.2021 and a notice of personal hearing were issued by uploading them on the common GST Portal. However, since the petitioner's GST registration was canceled, they couldn't access the GST Portal and were unaware of the notices.
The petitioner, thirumalai sales corporation contended that the respondent was aware of the cancellation of their GST registration but failed to serve the show cause notice and notice of personal hearing directly through physical means, opting only for the GST Portal.
Revenue argued that the petitioner's GST registration was canceled due to non-filing of returns. Despite cancellation, the petitioner continued business, leading to the issuance of a show cause notice on 09.07.2021. As no response was received, and the petitioner didn't appear for the personal hearing, the respondent confirmed the demand and passed the impugned orders and consequential attachment orders.
The respondent admitted that all communications, including the show cause notice, personal hearing notice, and impugned order, were only uploaded on the GST Portal. The petitioner was represented by G.Natarajan. Revenue was represented by E.Ranganayaki, Additional Government Pleader (T)
Justice Krishnan Ramaswamy set aside the impugned orders on violation of natural justice. Consequential proceedings initiated against the petitioner, including property attachment notices, were also set aside.
To Read the full text of the Order CLICK HERE
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