Case Law Details
MakeMyTrip (India) Private Limited Vs State Tax Officer (Madras High Court)
Introduction: The Madras High Court recently delivered a significant judgment in the case of MakeMyTrip (India) Private Limited vs State Tax Officer. The court addressed a crucial issue pertaining to the entitlement of an intermediary to exemption from GST payment for services related to hotel accommodation when the tariff is below Rs.1,000/-. This article provides a detailed analysis of the court’s decision, emphasizing the importance of considering the petitioner’s response to the show cause notice.
Detailed Analysis: The core contention in the Writ Petitions revolved around the impugned orders issued in July 2023, challenging the denial of GST exemption by the respondent. The common ground of challenge was the alleged non-consideration of the petitioner’s reply issued in June 2023 to the show cause notice in Form DRC-01.
Government Advocate Mr. V. Prashanth Kiran, representing the respondent, acknowledged notice during the admission listing. However, upon further instructions, he clarified that while the reply to the intimation in Form DRC-01A was considered, the reply dated 01.06.2023 to the show cause notice in Form DRC-01 was overlooked.
The Madras High Court, recognizing the prejudice caused by the non-consideration of this crucial reply, set aside the impugned orders without delving into the merits of the matter. The court emphasized that such oversight denies the petitioner a reasonable opportunity to present its case.
Consequently, the court ordered the matters to be remanded for reconsideration by the assessing officer. The directive included providing a reasonable opportunity to the petitioner and issuing a reasoned order within four weeks from the date of receiving the court’s order.
Conclusion: In conclusion, the judgment by the Madras High Court in the MakeMyTrip vs State Tax Officer case underscores the significance of due process in GST proceedings. The court’s decision highlights that the failure to consider a petitioner’s response to a show cause notice can render a GST order invalid. While refraining from expressing an opinion on the merits, the court’s intervention emphasizes the importance of affording a fair opportunity to the parties involved. This case serves as a precedent, reinforcing the necessity for thorough consideration of all relevant documents and responses in GST assessments.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
All these Writ Petitions pertain to a common issue: whether the petitioner, an intermediary, is entitled to exemption from payment of GST in respect of services provided in relation to hotel accommodation if the tariff is below Rs.1,000/-. In each Writ Petition, a separate order issued in July 2023 is impugned. The challenge is on the common ground that the respondent did not take into consideration, the reply issued in June 2023 to the show cause notice in Form DRC-01.
2. Mr. V. Prashanth Kiran, learned Government Advocate, accepted notice on behalf of respondent when the matter was listed for admission. After obtaining instructions, he submits that the reply of the petitioner to the intimation issued in Form DRC-01A was taken into consideration in the impugned order, but not the reply dated 01.06.2023 to the show cause notice issued in Form DRC-01.
3. The non-consideration of the reply to the show cause notice certainly prejudices the petitioner and denies the petitioner a reasonable opportunity to establish its position. On that sole ground, the respective impugned order calls for interference.
4. Accordingly, without expressing any opinion on the merits of the matter, the orders impugned herein are quashed. As a corollary, these matters are remanded for reconsideration by the assessing officer. After providing a reasonable opportunity to the petitioner and by taking into consideration the replies of the petitioner, a reasoned order shall be issued within a period of four weeks from the date of receipt of a copy of this order.
5. These Writ Petitions are disposed of on the above terms. There will be no order as to costs. Consequently, connected Miscellaneous Petitions are closed.
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