Sundar Prabhu Deva Vs State Tax Officer (ST) (Madras High Court)
In the case of Sundar Prabhu Deva vs State Tax Officer (ST), the Madras High Court addressed the issue of a GST assessment order challenged on grounds of violation of natural justice. The petitioner, engaged in the health insurance business, contested the order directing payment of tax and penalty and the subsequent attachment of his bank account. The main contention was that the petitioner was not properly served with a show cause notice, nor was he afforded a fair opportunity for a personal hearing. Although a show cause notice dated 04.03.2023 was allegedly issued, it was not served directly through post or email but merely uploaded on an online portal. The Court noted that setting a hearing date before the expiration of the 30-day reply period indicated that the respondent department did not intend to provide a genuine opportunity for defense.
The department, represented by the State Tax Officer, argued that efforts were made to serve the notice, but it was returned marked “Left,” leaving them to resort to uploading it online. They claimed that the petitioner’s failure to respond justified the confirmation of the tax demand. However, the petitioner countered that even if he had missed the notice, the department was still obligated to ensure a personal hearing after the reply deadline. The Court agreed with the petitioner, highlighting that the premature hearing date and the absence of direct notice delivery constituted serious breaches of procedural fairness.
