Ex Parte GST Order Quashed as Taxpayer Agreed to Deposit 25% of Disputed Tax

MGG Trading Private Limited Vs Deputy Commissioner (GST Appeal) (Madras High Court)

The Madras High Court heard a writ petition challenging an ex parte order passed by the second respondent. The petitioner contended that it was unaware of the proceedings because the notice had been served only through the online portal.

During the hearing, the learned Additional Government Pleader submitted that in similar matters, relief had been granted subject to the assessee depositing 25% of the disputed tax amount.

The petitioner agreed to deposit 25% of the disputed tax amount through the electronic cash ledger within thirty days from the date of receipt of the court’s order. The Court directed that upon such compliance, the attachment on the petitioner’s Input Tax Credit (ITC) account should be lifted immediately.

The Court further ordered that the impugned ex parte order would stand quashed upon compliance with the deposit requirement. Thereafter, the petitioner was directed to submit a reply to the show cause notice within thirty days. The second respondent was directed to provide the petitioner with an opportunity of personal hearing and pass a final order within two months thereafter.

The Court also clarified that if the petitioner failed to deposit the specified amount and submit its reply within the prescribed period, the benefit granted under the order would automatically stand recalled, and the impugned order challenged in the writ petition could be enforced.

Accordingly, the writ petition was disposed of, with no order as to costs. The connected miscellaneous petitions were also closed.

By S. Muthu Kumar Raja – Advocate, Madurai Bench of Madras High Court

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

Heard both sides.

2. The petitioner had suffered the impugned order at the hands of the second respondent. It is an ex parte order. The petitioner states that since notice was served only through on-line portal, the petitioner was not aware of the same.

3. The learned Additional Government Pleader submits that in similar matters, reliefs were granted by directing the assessee to deposit 25% of the disputed income tax amount.

4. The petitioner states that they will deposit 25% of the disputed tax amount through electronic cash ledger within a period of thirty days from the date of receipt of a copy of this order. Upon such compliance, the attachment effected on the petitioner’s ITC account shall be raised forthwith. The impugned order shall stand quashed. The petitioner shall thereafter reply to the show cause notice within a period of thirty days thereafter. The second respondent shall provide an opportunity of personal hearing to the petitioner and pass final order within a period of two months thereafter. If the petitioner fails to deposit and offer his reply to the show cause notice within the aforesaid period, the benefit of this order would stand automatically recalled and the order impugned in the writ petition can very well be enforced.

5. This writ petition is disposed of accordingly. No costs. Consequently, connected miscellaneous petitions are closed.