Madras HC Sets Aside Order & SCN: Merely uploaded on GST Portal i.e. Not Served Outside of GST Portal

Marson Industries Vs Deputy Commercial Tax Officer (Madras High Court)

Madras HC Sets Aside Order & SCN: Merely uploaded on GST Portal i.e. Not Served Outside of GST Portal

Marson Industries recently found themselves embroiled in legal proceedings against the Deputy Commercial Tax Officer concerning assessment periods 2018-2019 and 2019-2020. The crux of the matter revolves around the lack of communication regarding GST proceedings, ultimately leading to the Madras High Court intervening and setting aside the orders in question.

 The petitioner, Marson Industries, raised a crucial point regarding their unawareness of the proceedings that led to the contested orders. They emphasized that the show cause notice and assessment order were uploaded solely on the GST portal’s “View Additional Notices and Orders” tab, failing to reach them through any other means. This lack of direct communication deprived them of the opportunity to participate effectively in the proceedings.

Furthermore, the petitioner’s counsel highlighted discrepancies in the interest liabilities mentioned in Form GSTR DRC-03 and subsequent payments made by Marson Industries. The court noted that the impugned orders were issued without affording the petitioner a fair hearing, further supported by the payment receipts provided by Marson Industries.

Acknowledging these lapses, the court deemed it appropriate to set aside the orders and remand the matters to the respondent for reconsideration. Marson Industries was granted a window of 15 days to respond to the show cause notices, after which the respondent was directed to provide a reasonable opportunity for a personal hearing. The court mandated the issuance of fresh orders within two months from the receipt of Marson Industries’ reply.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

By these two writ petitions, orders dated 17.03.2023 pertaining to assessment periods 2018-2019 and 2019-2020 are challenged.

2. The petitioner asserts that he was unaware of proceedings culminating in the impugned orders because the show cause notice and assessment order were uploaded on the “View Additional Notices and Orders” tab on the GST portal and not communicated to the petitioner through any other mode.

3. Learned counsel for the petitioner refers to Form GSTR DRC-03 dated 23.05.2023 & 30.03.2023, respectively and points out that interest liability to the extent of Rs.88,028/- & Rs.3,05,551/-, respectively were discharged. He further submits that amounts were available in the electronic credit ledger of the petitioner and that the petitioner be provided an opportunity to contest the interest liability on merits.

4. Mr.T.N.C.Kaushik, learned Additional Government Pleader, accepts notice for the respondent. On examining the documents placed on record, it appears that the impugned orders were issued without hearing the petitioner. The petitioner has also placed on record the payment receipt pertaining to the payments of Rs.88,028/- & 3,05,551/-, respectively. The impugned orders relate only to interest. In these circumstances, it is just and appropriate that the petitioner be provided an opportunity to contest the interest liability on merits.

5. Therefore, the orders impugned herein dated 17.03.2023 are set aside and the matters are remanded to the respondent for reconsideration. The petitioner is permitted to submit a reply to the show cause notices within a period of 15 days from the date of receipt of a copy of this order. Upon receipt thereof, the respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue fresh orders within a period of two months from the date of receipt of the petitioner’s reply.

6. These writ petitions are disposed of on the above terms without any order as to costs. Consequently, connected miscellaneous petitions are closed.