Kandasamy Sivaprakash Vs Assistant Commissioner (ST) (Madras High Court)
In the case of Kandasamy Sivaprakash Vs Assistant Commissioner (ST), the Madras High Court addressed a writ petition seeking to quash an assessment order and related communication issued by the Assistant Commissioner. The petitioner, a retailer, had previously filed tax returns for the financial year 2018-2019. However, he received a show cause notice alleging discrepancies between various GST filings and demanding a payment of over ₹75 lakh, claiming this was due to differences in reported sales figures. The petitioner contended that the errors stemmed from a mistaken entry regarding B2C sales and requested the demand to be dropped. Despite submitting a reply, the Assistant Commissioner issued an assessment order demanding payment of nearly ₹54 lakh without a personal hearing, violating natural justice principles. The court found that the assessment order lacked due process and quashed it, allowing for a fresh consideration of the case. The court mandated the petitioner to pay 10% of the disputed tax amount to facilitate the reassessment process, emphasizing the necessity of a personal hearing before any new decision could be made. Additionally, the court ordered the lifting of the freeze on the petitioner’s bank account, which had hindered his business activities.
