“Your Reply Not Accepted" Is Not Enough: Madras HC sets aside GST Order for Mindless Dismissal of Taxpayer’s Submission [Read Order]
The Court found this summary disposal of the taxpayer’s case deeply flawed, thus set aside the order.
![“Your Reply Not Accepted Is Not Enough: Madras HC sets aside GST Order for Mindless Dismissal of Taxpayer’s Submission [Read Order]](https://images.taxscan.in/h-upload/2025/07/30/2070854-gst-order-hc-taxscan-1.webp "“Your Reply Not Accepted Is Not Enough: Madras HC sets aside GST Order for Mindless Dismissal of Taxpayer’s Submission [Read Order]")
The Madras High Court has quashed a GST ( Goods and Services Tax ) assessment order passed stating a complete lack of application of mind and failure to consider the taxpayer’s detailed submissions. Justice Krishnan Ramasamy observed that a cryptic remark such as “Verified the reply details to Your reply not accepted” cannot be a valid substitute for a reasoned order,...
The Madras High Court has quashed a GST ( Goods and Services Tax ) assessment order passed stating a complete lack of application of mind and failure to consider the taxpayer’s detailed submissions.
Justice Krishnan Ramasamy observed that a cryptic remark such as “Verified the reply details to Your reply not accepted” cannot be a valid substitute for a reasoned order, particularly when replies and documents have been furnished by the taxpayer.
The petitioner, M/s.Lakshmi Road and Infra, challenged an assessment order dated August 23, 2024, in which the GST department had demanded reversal of input tax credit (ITC) amounting to ₹12,13,375. The dispute was based on discrepancies between GSTR-1 and GSTR-9 filings, as well as claims of excess ITC for the financial year 2019–2020.
Know the complete aspects of tax implications of succession, Click here
Although a show cause notice was issued and personal hearings were scheduled for June 10 and August 22, 2024, the petitioner, through counsel, filed comprehensive replies on June 21 and August 23, 2024, supported by documentation, stating medical reasons for inability to attend in person.
However, without engaging with the replies or providing a meaningful hearing, the GST officer proceeded to pass the assessment order with a one-line rejection of the taxpayer’s reply and proceeded to debit the ITC directly from the electronic credit ledger on April 2, 2025.
The Court found this summary disposal of the taxpayer’s case deeply flawed. It stated that even if the taxpayer missed the hearing dates due to valid reasons, their written submissions should have been duly evaluated on merits, the bench observed that the order lacked not just detailed reasoning, but also procedural fairness.
Complete Ready to Use PDFs of 200+ Agreements Click here
Accordingly, the High Court set aside the impugned order and remanded the matter back to the respondent for fresh consideration. It directed that upon re-filing of objections by the petitioner within three weeks, the assessing authority must grant a clear 14-day notice for personal hearing and thereafter pass a speaking order.
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
