Case Law Details
Tvl. Vectra Computer Solutions Vs Commissioner of Commercial Taxes (Madras High Court)
High Court held that Personal hearing must be afforded to taxpayer before cancellation of GST Registration. As in this case no such Opportunity was afforded to Taxpayer so High Court has Quashed the Cancellation order.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Heard the learned counsel on either side.
2. The petitioner has registered themselves on the file of the second respondent. The petitioner was filing returns under the Tamil Nadu Value Added Tax Act, 2006 and subsequently, under the GST regime also. The petitioner’s registration was cancelled on 06.09.2018 on the ground of non-filing of returns. The said defect was subsequently rectified by the petitioner. The petitioner also remitted GST dues to the tune of Rs.66,781/- together with late fee. The petitioner received notice dated 29.10.2019 in which certain defects have been pointed out. The defect includes sales omission and purchase omission also. It was also proposed to levy tax on service charges paid and discount paid. For the reasons best known to the petitioner, no reply was submitted. Thereafter, the impugned order came to be passed levying tax and penalty on the petitioner.
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In my case, personal hearing was asked within 2 days of SCN during this pandemic, against which reply was filed promptly same day, however ignoring the reply, cancellation order was passed subsequently on account of absence of physical hearing and that too effective retrospectively since 1.07.2017. Raised grievance, mailed to GST Council but in vain. Plz Comment