GST: Madras HC Quashes Order Departed Under Violation of Natural Justice

Under the Goods and services tax act 2017, the Madras High Court set aside the passed assessment order which was a breach of the natural justice principle.

EPMs Property Services Private Limited, the applicant has challenged the assessment orders which was passed beneath the provisions of the Tamil Nadu Goods and Services Taxes Act, 2017, as well as a memo dated 26.02.2020 provided via the Deputy Commissioner (Sales Tax) holding the appeals furnished via the applicant contesting the mentioned orders of the assessment as non-maintainable and filed above the duration of limitation.

The same was provided that notices were being furnished dated 26.08.2019 referring to distinct particulars for finalizing the assessments. The authorized representative of the applicant who was concerned with the tax cases during that period was diagnosed with hepatitis and had, vide letter on 10.09.2019, asks an adjournment.

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A second notice complied dated 4.10.2019 allotted 7 days to answer with the documentary proofs supporting the arguments. The applicant’s representatives were still not in a good condition and therefore not able to choose a good procedure in the time allotted to answer.

The applicant furnished the legal appeals contesting the assessments. The petitioner memorandum has an error in that, the receipt date of the order was mentioned as 21.10.2019. The assessment orders would have been obtained dated 29.09.2019 as confirmed via the certificate provided by the state tax officer as the petition would get filed in the mentioned time.

The orders of the assessment would have suffered from the breach of the principle of natural justice, a single judge coram of Dr Justice Anita Sumanth witnessed. The exchange of correspondence among the parties designated that the applicant was cooperating with the proceedings of assessment.

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This along with the urge mentioned in the letter on 10.09.2019 mentioned that the applicant must be afforded the chance of hearing and would be refused that prior to passing the impugned orders.

The impugned memo and orders and the assessments that were set aside by the court were remanded to the file of the assessing authority to be done again, de novo.