T.B. Sabrish Vs Assistant Commissioner (Madras High Court)
Assessment Order in GST was set aside due to lack of proper notice and matter remanded subject to deposit of 25% of disputed tax: Madras HC
Conclusion: Mere uploading of notices and orders on the GST portal might not be sufficient to fulfill the requirement of proper service, especially when it prevented assessee from being aware of the proceedings. Therefore, the assessment order was set aside and assessee was provided with another chance to respond upholding the principles of natural justice and fairness in tax proceedings.
Held: Assessee was engaged in trading of silver and related products and was registered under the Goods and Services Tax Act, 2017. During the relevant period 2023- 24, assessee filed its returns and paid the appropriate taxes. On verification of GSTR returns, it was found that assessee had supplied goods and services without issuing any invoices thereby warranting penalty. A notice in DRC-01A was issued and another notice in DRC-01 was issued. Further, personal hearing was fixed on 28.02.2024. However, assessee had neither filed its reply nor availed the opportunity for a earing. Assessee submitted that the impugned order of assessment had been served on assessee by tender or sending it by RPAD, instead it had been uploaded in the “view additional notices and orders” tab on the GST Portal, thereby, assessee was unaware of the initiated proceedings and was thus unable to participate in the adjudication proceedings. On appeal. It was held that in case of M/s K. Balakrishnan Balu Cables vs. O/o. Assistant Commissioner of GST, Central Excise, where the matter was remanded under similar circumstances, requiring the assessee to deposit 25% of the disputed tax. In the present case, assessee expressed willingness to pay 25% of the disputed tax. The court set aside the impugned assessment order. The court directed that upon payment of 25% of the disputed tax, the impugned order should be treated as a show cause notice. Assessee was granted an opportunity to submit their objections within a specified time.
