GST Orders States ‘No Reply Filed’ Despite Filing: Madras Orders to Pass Order Afresh [Read Order]
The court noted that the impugned order was liable to be quashed as it was clearly passed without considering the taxpayer’s reply
![GST Orders States ‘No Reply Filed’ Despite Filing: Madras Orders to Pass Order Afresh [Read Order]](https://images.taxscan.in/h-upload/2025/06/26/2054579-gst-orders-filing-taxscan.webp "GST Orders States ‘No Reply Filed’ Despite Filing: Madras Orders to Pass Order Afresh [Read Order]")
The Madurai Bench of the Madras High Court quashed a GST ( Goods and Services Tax ) assessment order that incorrectly recorded no reply to the show cause notice ( SCN ), despite the taxpayer having duly submitted a response.
M/s Sri Modern Agencies was concerned in the case, and Form GST DRC-06 acknowledged their response dated 22.01.2025. But according to the assessment order of 18.02.2025, no response was obtained.
The petitioner contended that it had duly submitted a reply to the SCN issued in Form GST DRC-01 dated November 29, 2024. The reply was submitted on January 22, 2025, and was properly acknowledged in Form GST DRC-06. However, the final assessment order erroneously recorded that no reply had been filed by the petitioner.
Taking note of this discrepancy, the petitioner also filed a rectification application on May 8, 2025, which was later rejected by the tax authorities on June 10, 2025, citing a Board circular.
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However, before the High Court, the department's counsel admitted that the reply to the SCN was indeed filed by the petitioner and acknowledged officially.
JusticeC. Saravanan, held that the impugned order was liable to be quashed as it was clearly passed without considering the taxpayer’s reply. The Court noted that such procedural lapses not only violate the principles of natural justice but also render the order arbitrary and unsustainable.
It stated that “Having considered the submissions made by the learned counsel for the petitioner and the learned Government Advocate for the respondent, I am of the view that the petitioner has made out a case for interfering with the impugned order, as the impugned order clearly records that the petitioner has not replied, even though the petitioner has indeed replied on 22.01.2025, which has been duly acknowledged in Form GST DRC 06.”
Accordingly, the High Court quashed the assessment order and remanded the matter back to the jurisdictional State Tax Officer, directing that a fresh order be passed after duly considering the reply of the petitioner and affording an opportunity of personal hearing. The Court instructed that the fresh order be issued within three months from the date of receipt of its order.
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