Madras HC Cancels GST Order Due to Petitioner Not Being Aware of Notice Uploaded on Portal

A GST assessment order has been set aside by the Madras HC as the applicant does not know the proceedings on the portal and asked for a new assessment with a chance to get heard.

On the ground of a violation of principles of natural justice the assessment order has been quashed by the applicant, Ace Industrial Gases Pvt. Ltd.

As the SCN and the impugned order were uploaded on the ‘View Additional Notices and Orders’ tab on the GST portal but not communicated to the applicant via any other mode it was claimed that the applicant was not learned of the proceedings culminating in the impugned order.

The applicant as per the impugned order emphasized that the tax proposal emerged as a consequence of an accidental error committed through the applicant at the time of filling the GSTR 3B returns in as much as amounts were incorrectly filled up in the RCM column rather than ‘all other ITC’ column.

The applicant’s representative Sri Harini S.P, furnished that just eligible Input Tax Credit (ITC) was claimed and, if provided a chance, they could prove the same. It was indeed agreed by the applicant to remit 10% of the disputed tax demand as a condition for remand.

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C. Harsha Raj, representing the respondents pointed out that the principles of natural justice were adhered to by issuing the SCN and a personal hearing notice and via proposing a personal hearing.

The bench of Justice Senthilkumar Ramamoorthy acknowledged that the tax proposal is pertinent to the alleged prohibited claim Input Tax Credit (ITC). The court noted that it is fair and required for the applicant to be allowed to challenge the tax demand based on its merits, although with certain conditions imposed on the petitioner.

The impugned order has been set aside by the court and the case is remanded for reconsideration within the condition that the applicant remits 10% of the disputed tax demand as considered with a 2-week duration from the date of receipt of a copy of this order.

The applicant has been allowed to respond to the SCN and the respondent is asked to furnish a reasonable chance to the applicant along with a personal hearing and hence issue a new assessment order within 3 months.