Notice and Tax Demand Order Given at Same Time: Madras HC Directs to Start Case Proceeding By Law

The GST demand order issued on the exact date of issuance of Show Cause Notice ( SCN ) has been set aside by the Madras High Court. The Assistant Commissioner (ST) asked to initiate the proceedings under the statute.

Both the SCN and the impugned order were issued on the same date, which, they argued, violated sub-section (2) of Section 73 of the applicable GST enactments, the applicant, Pithamber Distributors argued.

The counsel of the applicant underscores that the simultaneous issuance of the SCN along with the impugned order, stresses the lack of a reasonable chance furnished before the applicant.

On analysis of the shown documents, the court revealed the merit in the opinion that a reasonable chance was not furnished as of the concurrent issuance of the show cause notice (SCN) and the impugned order. The court considered the impugned order unsustainable.

Consequently, a single bench of Justice Senthilkumar Ramamoorthy set aside the impugned order on 31.12.2023, with the respondent furnished the privilege to initiate proceedings following the law.

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As per that the writ petition was closed.