GST Officer must consider reply even if filed by assessee after multiple reminders

Tvl. Aarna Traders Vs Deputy State Tax Officer II (Madras High Court)

Conclusion: Since GST Officers chose to disregard the reply because it was submitted after multiple reminders, therefore, the order was liable to be set aside and the reply of assessee was disregarded.

Held:  Upon scrutiny of returns filed by assessee, show cause notice was issued to assessee regarding the mismatch between assessee’s GSTR 3B returns and the auto-populated GSTR 2A. This was followed by two reminders each dated 11.03.2024. The second reminder called for a response on or before 15.03.2024. Assessee replied on 15.03.2024. The impugned order was issued thereafter on 29.04.2024. Assessee referred to the impugned order and pointed out that the reply was not considered by the proper officer because such reply was filed after four opportunities of personal hearing. On account of such non consideration, assessee submitted that the impugned order could not be sustained. Assessee had stated that the extent of mismatch was only Rs.1,03,176/- each towards CGST and SGST and not Rs.1,39,093/- each towards CGST and SGST. It was held that the respondent chose to disregard the reply because it was submitted after multiple reminders. Since the reply of assessee was disregarded, the order was liable to be set aside. Upon receipt thereof, the respondent was directed to provide a reasonable opportunity to assessee, including a personal hearing, and thereafter issue a fresh order within a period of three months from the date of receipt of assessee’s reply.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

An order in original dated 29.04.2024 is challenged on the ground that the petitioner’s reply was disregarded. Upon scrutiny of returns filed by the petitioner, show cause notice dated 20.01.2024 was issued to the petitioner regarding the mismatch between the petitioner’s GSTR 3B returns and the auto-populated GSTR 2A. This was followed by two reminders each dated 11.03.2024. The second reminder called for a response on or before 15.03.2024. The petitioner replied on 15.03.2024. The impugned order was issued thereafter on 29.04.2024.

2. Learned counsel for the petitioner referred to the impugned order and pointed out that the reply was not considered by the proper officer because such reply was filed after four opportunities of personal hearing. On account of such non consideration, learned counsel submits that the impugned order cannot be sustained.

3. Mr. T. N. C. Kaushik, learned Additional Government Pleader, accepts notice for the respondent. He points out that the petitioner has not replied on the factual issue raised in the show cause notice and has merely referred to case law.

4. The reminder dated 11.03.2024, which is labelled as reminder 3, calls for a response by 15.03.2024. The petitioner’s reply dated 15.03.2024 is on record. In such reply, the petitioner has stated that the extent of mismatch is only Rs.1,03,176/- each towards CGST and SGST and not Rs.1,39,093/- each towards CGST and SGST. In addition, the petitioner has referred to judgments relating to such mismatch. In the impugned order, it is recorded as under, in relevant part:

“ Of late a Reply dated 15.03.2024 had been filed by the tax payer on completion of all four opportunities of personal hearings. However, the reply filed was not considered by the proper officer.”

5. From the above extract, it is clear that the respondent chose to disregard the reply because it was submitted after multiple reminders. Since the reply of the petitioner was disregarded, the order is liable to be set aside.

6. Therefore, the impugned order dated 29.04.2024 is set aside and the matter is remanded for reconsideration. The petitioner is permitted to submit a reply to the show cause notice within 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 a fresh order within a period of three months from the date of receipt of the petitioner’s reply.

7. The writ petition is disposed of on the above terms without any order as to costs. Consequently, connected miscellaneous petitions are closed.