Tvl.Saraswathi Traders Vs State Tax Officer (Madras High Court)
Madras High Court has set aside a Goods and Services Tax (GST) order, ruling that tax authorities must consider a taxpayer’s reply to a show cause notice, even if the submission is made beyond the stipulated deadline. The decision, delivered in the case of Tvl. Saraswathi Traders versus the State Tax Officer, underscores the fundamental importance of natural justice in assessment proceedings.
Background of the Case
Tvl. Saraswathi Traders had received a show cause notice from the State Tax Officer on March 28, 2025, with an initial deadline for reply set for May 1, 2025. A subsequent reminder notice on June 13, 2025, extended this period to June 16, 2025. However, the petitioner submitted their detailed response via the online portal on June 18, 2025, two days after the final extended deadline.
Dispute Over Reply Consideration
Despite the petitioner’s submission, the State Tax Officer issued an assessment order on June 23, 2025, asserting that no reply had been filed. The petitioner’s legal counsel argued before the High Court that this constituted a clear violation of the principles of natural justice, as their defense was entirely overlooked. In response, the learned Government Advocate, representing the tax department, conceded that the reply was indeed filed late. The department’s stance was that, being beyond the extended deadline, they were under the impression that no response had been received and thus proceeded with the order without verifying the portal for belated submissions.
