AKM Beverages and Manikandan Contractor Vs Assistant Commissioner (ST) (Madras High Court)
Madras High Court has set aside the GST demand orders issued against AKM Beverages and Manikandan Contractor, ruling that the orders were passed ex parte without affording the petitioner an opportunity to respond. The case challenged the orders dated December 27, 2023, on the grounds that the notices were only uploaded on the GST portal and were not directly served to the petitioner. As a result, the petitioner remained unaware of the proceedings and could not submit a reply or appear for a hearing. The court ruled that this failure to ensure proper service of notices amounted to a violation of the principles of natural justice.
The petitioner had voluntarily paid Rs. 22,34,326 before the issuance of the impugned order, while the tax liability assessed in the order was Rs. 16,80,931. The respondent’s counsel acknowledged this payment and stated that the matter could be addressed according to the law. The court noted that since the orders were issued without direct notice, the proceedings were effectively held behind the petitioner’s back. Citing procedural irregularities, the court deemed the orders void and remanded the matter for fresh consideration.
The Madras High Court directed the petitioner to submit a fresh reply with supporting documents within two weeks. The tax authority must then provide a clear 14-day notice for a personal hearing before passing a final order. This ruling underscores the importance of procedural fairness in tax matters and the necessity of serving notices through proper channels to ensure taxpayer rights are protected.
