Financial Crisis Not a Valid Ground to Set Aside Order When Adequate Opportunity Granted After Remand for Fresh Consideration: Madras HC

The Madras High Court held that a plea of financial crisis is not a valid ground to set aside an order, particularly when adequate opportunity of hearing has been granted pursuant to a remand for fresh consideration.

The petitioner, Sripavi Garments, filed a writ petition challenging the assessment order initially passed on 31.08.2023 for Assessment Year (AY) 2018-19. Earlier, by order on 29.07.2024, the court has set aside the assessment order and remanded the matter back to the respondent, the Assistant Commissioner of CGST and Excise, for fresh consideration

S.Kannan, the counsel representing the petitioner, submitted that though the petitioner participated in the proceedings pursuant to the remand, due to the financial crisis, the petitioner was not in a position to effectively pursue the matter, and consequently, the impugned order dated 07.02.2025 came to be passed.

Dilip Kumar, the counsel representing the respondent, contended that sufficient opportunity was granted to the petitioner after remand. However, despite participating in the proceedings, the petitioner failed to file a proper reply.

Justice Krishnan Ramasamy, observed that the original assessment order dated 31.08.2023 has already been set aside by the Court and the matter was for fresh consideration. It was noted by the court that the petitioner was afforded an opportunity to be heard but failed to file an effective reply.

In light of facts and circumstances, it was held by the court that the petitioner's reason of financial crisis cannot be accepted as a valid ground to set aside the impugned order, particularly when adequate opportunity had already been granted by the respondent.

Accordingly, the writ petition was dismissed.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates