Tvl. V.K.D. Store Vs State Tax Officer/Commercial Tax Officer (Madras High Court)
Madras High Court set aside a GST assessment order against Tvl. V.K.D. Store for the assessment year 2018-19, citing improper service of notice. The petitioner, a registered taxpayer under the GST Act, argued that the discrepancy between GSTR-3B and GSTR-2A led to scrutiny under Section 61, followed by a notice issued in DRC-01. However, the petitioner claimed they were unaware of the proceedings as notices were uploaded only to the “additional notices and orders” tab on the GST portal without direct communication. As a result, they could not respond or participate in the hearing. Relying on a previous ruling in a similar case (M/s. K. Balakrishnan, Balu Cables), the petitioner sought a fresh opportunity to present their case, agreeing to deposit 25% of the disputed tax. The respondent did not object to this request.
The court ruled that the impugned assessment order be set aside, allowing the petitioner to present their objections. The petitioner was directed to deposit 25% of the disputed tax within four weeks, with any prior recoveries or pre-deposits being adjusted. Upon compliance, the impugned order would be treated as a show cause notice, and the petitioner would have four additional weeks to submit objections with supporting documents. If the conditions were not met, the original assessment order would stand restored. The court also ordered the withdrawal of any bank attachments or garnishee proceedings upon compliance. No costs were awarded in the case.
