Silver & C.Z. International Vs Assistant Commissioner (ST) (FAC) (Madras High Court)
Introduction: The Madras High Court recently delivered a judgment in the case of Silver & C.Z. International versus the Assistant Commissioner (ST). The petitioner, engaged in bullion and jewellery trading, challenged an order dated 23.12.2023, citing a breach of natural justice principles.
Detailed Analysis: The petitioner argued that they were unaware of the proceedings leading to the impugned order as the notices were only uploaded on the GST portal, without any other form of communication. They contended that they were denied a fair opportunity to contest the tax demand on its merits. Furthermore, they claimed to have paid taxes both in advance and on subsequent invoices, resulting in an overpayment. The petitioner sought a chance to explain the alleged mismatch in the tax demand.
The government advocate countered, stating that the notices were also sent via email besides being uploaded on the GST portal, hence denying any lack of communication.
The court, upon reviewing the impugned order, found that the tax proposal was confirmed due to the petitioner’s failure to respond to the show cause notice with relevant documents. However, in the interest of justice, the court decided to remand the matter, granting the petitioner an opportunity to contest the tax demand. It was stipulated that the petitioner must remit 10% of the disputed tax demand within three weeks and provide a reply to the show cause notice within the same period. Upon receipt of the reply and satisfaction of the remittance condition, the respondent was directed to afford the petitioner a reasonable opportunity, including a personal hearing, and issue a fresh order within two months.
