Stem Infrastructure Vs Assistant Commissioner (ST) (Madras High Court)
Summary: In Stem Infrastructure v. Assistant Commissioner (GST) [W.P. No. 12406 of 2024], the Madras High Court overturned a tax assessment order issued on December 18, 2023, due to the negligent conduct of the petitioner’s accountant. The petitioner argued they were unaware of the proceedings and the show cause notice (SCN) because their accountant failed to inform them. Despite the Revenue Department’s claim of sending reminders, the court found that the petitioner was denied a fair opportunity to respond. The court ruled that the petitioner should be granted the chance to contest the tax demand on its merits, provided they deposit 10% of the disputed amount. The order requires the petitioner to file a reply to the SCN and mandates the Revenue Department to offer a personal hearing and issue a fresh assessment order after receiving the deposit. This decision ensures that procedural fairness is upheld, allowing the petitioner to address the tax demand properly.
Introduction:
The Hon’ble Madras High Court in Stem Infrastructure v. Assistant Commissioner (GST) [W.P. No. 12406 of 2024 dated June 07, 2024], set aside the assessment order and granted opportunity to contest tax demand wherein the assessee could not file the reply due to negligent conduct of the accountant as the assessee was not informed about the proceedings initiated by the revenue department.
