Tvl. Sri Ganesh Murugan Modern Rice Mill Vs State Tax Officer (Madras High Court)
Madras High Court held that passing of ex-parte order and imposing penalty under section 125 of the GST Act is not sustainable since GST notice was uploaded only in the GST portal and not served physically. Accordingly, matter remanded back for fresh consideration.
Facts- The challenge in the present writ petition is made against the impugned order dated 23.07.2024 and consequential order dated 23.07.2024 passed by the 1st respondent. The petitioner contested that, in the present case, return was not filed by the petitioner for the period from April 2019 to March 2020. The reason for not filing of the return was due to the non-serving of the physical copy of the notices. In the present case, show cause notice and personal hearing notices were only uploaded in the GST portal and the same were not served to the petitioner physically. Hence, the petitioner was not aware of the same and as a result, he could not file his return for the above said period. However, without hearing him, the impugned order came to be passed, imposing late fee and penalty.
Conclusion- Held that the impugned assessment dated 23.07.2024 and consequential order dated 23.07.2024 passed by the 1st respondent are set aside. Consequently, the matter is remanded to the 1st respondent for fresh consideration. While remanding the matter, it is made clear that, the impugned orders are set aside subject to the condition that, the petitioner deposits the late fee, within a period of three weeks from the date of receipt of a copy of this order. Upon making of such deposit, the petitioner shall file his reply along with supportive documents within a period of two weeks, and thereupon, the 1st respondent shall consider the reply and shall issue a clear 14 days notice affording an opportunity of personal hearing to the petitioner and then, to decide the matter in accordance with law.
