Tvl. Ramya Auto Spares Vs Assistant Commissioner (ST) (Madras High Court)
The Madras High Court has set aside a penalty order against Tvl. Ramya Auto Spares, offering a fresh opportunity to contest the demand, citing the company’s claim of unawareness due to GST registration cancellation. The Assistant Commissioner (ST) had confirmed a proposal in a show cause notice (DRC 01) dated May 28, 2024, leading to an order on August 20, 2024, after the petitioner failed to reply or attend a personal hearing on August 13, 2024.
Tvl. Ramya Auto Spares argued that its GST registration was cancelled on December 31, 2022, rendering them unaware of the online notices and the subsequent order. This lack of communication, they contended, prevented them from presenting their case.
The Assistant Commissioner (ST) countered, asserting the petition lacked merit as the company had allegedly wrongly availed evaded tax, and the cancellation of registration should not be an excuse for ignoring statutory notices.
The High Court, after considering both arguments, decided to grant a “partial remedy.” It quashed the impugned order on the condition that Tvl. Ramya Auto Spares deposit 25% of the disputed tax in cash with the respondent. The quashed order will now be treated as an addendum/corrigendum to the original show cause notice. The petitioner has been directed to file a reply to this notice within 30 days of receiving the court’s order, along with the required deposit. Upon compliance, the respondent is to consider the reply and pass a fresh order on merits within three months, ensuring a proper hearing for the petitioner. No specific judicial precedents were cited in this judgment.
