Unaware of GST Proceedings due to Notices uploaded in GST Portal: Madras HC sets aside Assessment Order [Read Order]

The Madras High Court set aside a GST assessment order due to the petitioner being unaware of proceedings on the portal and directed a fresh assessment with an opportunity to be heard.

The petitioner, Ace Industrial Gases Pvt. Ltd., challenged the assessment order on the ground of breach of principles of natural justice.

It was asserted that the petitioner was unaware of proceedings culminating in the impugned assessment order because the show cause notice and impugned order were uploaded on the ‘View Additional Notices and Orders’ tab on the GST portal but not communicated to the petitioner through any other mode.

Referring to the impugned order, the petitioner’s counsel highlighted that the tax proposal arose as a result of an inadvertent error committed by the petitioner while filling up the GSTR 3B returns in as much as amounts were erroneously filled up in the RCM column instead of 'all other ITC' column.

Sri Harini S.P, representing the petitioner, submitted that only eligible Input Tax Credit (ITC) was availed and, if given a chance, they could prove this. The petitioner also agreed to remit 10% of the disputed tax demand as a condition for remand.

The respondents, represented by C. Harsha Raj, pointed out that the principles of natural justice were complied with by issuing show cause notice and a personal hearing notice and by offering a personal hearing.

The bench of Justice Senthilkumar Ramamoorthy conceded that the tax proposal solely related to the alleged wrongful availment of ITC. The court observed that it is just and necessary that the petitioner be provided an opportunity to contest the tax demand on merits, albeit by putting the petitioner on terms.

Consequently, the court set aside the impugned order, and the matter is remanded for reconsideration, subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a period of two weeks from the date of receipt of a copy of this order.

The petitioner is permitted to submit a reply to the show cause notice, and the respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh assessment order within three months.

To Read the full text of the Order CLICK HERE

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