The Madras High Court held that passing an ex parte GST assessment order without granting personal hearing was unsustainable. The matter was remanded subject to payment of 25% of the disputed tax.
The Court restored GST registration cancelled for six months non-filing of returns, accepting financial hardship as a genuine reason and imposing strict compliance conditions.
Madras HC Dismisses Plea Against GST Registration Cancellation Over Suspicious E-Way Bill, ITC Claims, Dual GST Registration at Same Premises and for Failure to Prove Physical Movement of Goods
The Court ordered adjudication of GST show cause notice on royalty but directed that no recovery be made and implementation be kept in abeyance pending the Supreme Court’s decision.
The High Court revoked cancellation of GST registration after accepting the petitioner’s explanation of financial and health difficulties. However, restoration was made conditional upon filing pending returns and restricting ITC utilization until departmental scrutiny.
The High Court held that though notice was uploaded on the GST portal, failure to grant personal hearing and explore other service modes vitiated the assessment. The matter was remanded subject to 25% tax payment.
The Court found inconsistency in the service date of the show cause notice and held that no proper opportunity of hearing was given. The matter was remanded for fresh adjudication.
The Court held that Section 73 does not prohibit issuance of multiple show cause notices for the same tax period when they address different discrepancies. Only overlapping demands on identical facts are impermissible.
The Court held that renting space within a university campus for banks and similar facilities forms part of allied educational services. Consequently, the service tax demand and penalties were quashed.
The Court dismissed the plea seeking declaration that statutory university functions are not taxable under GST. It held the issue is already covered by prior decisions and allowed authorities to proceed as per law.
