Tvl. Arun Medicals Vs Assistant Commissioner (ST) (Madras High Court)
Madras High Court has set aside an assessment order and a consequential bank account attachment notice issued against Tvl. Arun Medicals for the assessment year 2017-2018. The court cited a violation of natural justice, noting that the petitioner was not given a proper opportunity to respond to the tax demand.
The dispute arose from an alleged mismatch of tax liability between GSTR-3B and GSTR-2A forms filed by Tvl. Arun Medicals. An order dated December 29, 2023, was subsequently passed, demanding the differential tax. A consequential GST DRC-13 notice for bank account attachment was issued on June 19, 2024.
Counsel for Tvl. Arun Medicals submitted that a show cause notice regarding the mismatch was uploaded on the GST common portal. However, the petitioner’s GST registration had been cancelled, preventing them from accessing the portal and responding to the notice. Consequently, the assessment order was also uploaded on the portal without physical service to the petitioner. The petitioner only became aware of the demand and order when their bank account was frozen. The counsel requested an opportunity for the petitioner to file a reply and participate in the proceedings, agreeing to pay 10% of the disputed tax demand as a gesture of good faith.
