Madras HC: Registered Persons Must Monitor the GST Portal, Can’t Be Absolved of Responsibility

The Madras High Court ruled that the taxpayer could not be absolved of responsibility as a registered person to track the GST portal.

The bench of Justice Senthilkumar Ramamoorthy has marked that an audit was accomplished and that a GST audit report on 15.09.2023 was provided. An intimation and show cause notice preceded the impugned order. As the petitioner did not furnish a response along with supporting documents it is evident that the tax proposal was confirmed. Hence, by putting the applicant on terms, the interest of justice mandates that the applicant be provided a chance.

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The applicant is nearly 78 years old and was suffering from distinct illnesses. It mentioned that he was not able to answer the SCN or participate in the proceedings.

The applicant argued that the applicant shall answer to each of the 5 defects dealt with in the impugned order when furnished a chance. The applicant wishes to remit 10% of the disputed tax demand as a condition for remand.

The intimation and show cause notice (SCN) was after the issuance of the audit report to the petitioner, the council argued. Enough chance was afforded before the applicant.

The order was set aside by the court and the case is remanded for reconsideration as per the condition that the applicant remits 10% of the disputed tax demand which was agreed to in the highest duration of 3 weeks.

As per the court, the applicant is authorized to respond to the SCN. On the applicant’s response receipt and on being satisfied that 10% of the disputed tax demand was obtained, the respondent is asked to furnish a reasonable chance to the applicant, as well as a personal hearing, and administer a fresh order within 2 months from the date of receipt of the response of the applicant.