GST Notices for Old-Cancelled GSTIN Served Only via Portal: Madras HC allows Merger of Old & New GSTIN for ITC Utilisation [Read Order]

In an important ruling, the Madurai Bench of the Madras High Court allowed the merger of old and new GSTIN ( Goods and Services Tax Identification number ) for the ITC ( Input Tax Credit) utilisation. The court was entertaining the matter related to issuance of notices only to the portal when the GST number was cancelled.

In the petition filed by M/s. Mathusamy Thangamuthu Nachiyar, challenged multiple ex-parte final orders passed for different financial years under the old GSTIN which had been suo motu cancelled on 31.12.2019.

The petitioner submitted that it obtained a new GSTIN on 27.07.2021, and contended that all communications were continued to be uploaded only under the cancelled GSTIN. Therefore, the petitioner was unaware of the proceedings.

It further submitted that since notices and reminders were merely uploaded on the GST portal, it could not respond in time and the department proceeded to pass assessment orders without granting any personal hearing.

The petitioner was willing to deposit 25% of the disputed tax, and sought an opportunity to contest the matter on merits. It also requested lifting of the bank attachment to enable payment.

The State said that the service through portal upload as a valid mode. It admitted before the Court that no personal hearing had been provided before passing the impugned orders.

The court heard the matter. According to Justice Krishnan Ramsamy, the officer could have applied mind when there were no responses from the petitioner after repeated reminders.

The officer could have issued notices through other statutory modes of service under Section 169 of the GST Act, such as RPAD, said the court.

‘Merely passing an ex parte order by fulfilling the empty formalities will not serve any useful purpose and the same will only pave way for multiplicity of litigations, not only wasting the time of the Officer concerned, but also the precious time of the Appellate Authority/Tribunal and this Court as well’ said the Justice Ramasamy.

Therefore, the court set aside the impugned order, however the same shall be made after the agreed deposit of 25% of the disputed tax. It directed the bank to release only the said amount from the attached account for making the payment and after receival, the department instructed to lift the freeze.

And while concluding the judgment, the Court said that the petitioner may continue business through the new GST number and avail ITC.

It also directed the GST department to merge the old GSTIN and new GSTIN and allow utilisation of ITC, if any, in future transactions. With these directions, the writ petitions were disposed of.