Aadhi Cars Private Limited Vs Assistant Commissioner (ST) (FAC) (Madras High Court)
Madras High Court held that ex-parte order passed under Section 73 of the Central Goods and Services Tax Act without affording adequate opportunity of being heard is in violation of principles of natural justice. Accordingly, order set aside.
Facts- The respondent initially issued a DRC-01 notice dated 27.12.2021, followed by a Show Cause Notice in Form GST DRC-01 dated 15.07.2022, citing short payment of tax upon comparing GSTR-9 and GSTR-3B, irregularity in reporting transactions attracting TDS, short payment of interest due to delayed tax payment, and (d) claiming of ITC for the period 2017-2018. The petitioner responded with a detailed reply on 16.08.2022, disputing the alleged discrepancies and providing supporting documents.
However, another DRC-01 notice dated 26.09.2023 was issued based on a comparison of GSTR-3B, GSTR-1, and GSTR-2A for FY 2018-2019. The petitioner responded to this as well, leading to the issuance of a Drop Proceedings order dated 16.12.2023.
Despite the resolution of these issues, the petitioner received a notice in Form ADT-01 on 21.04.2023, followed by audit observations and another Show Cause Notice dated 09.01.2024. The petitioner only became aware of this latter notice when it was uploaded on the GST portal, along with multiple other notices related to the same audit proceedings.
