Rajesh Manohar Pujara Vs Assistant Commissioner (ST) (Madras High Court)
In the case of Rajesh Manohar Pujara Vs. Assistant Commissioner (ST) (Madras High Court), the petitioner, who operates a retail business of Industrial Hardware and is registered under GST, challenged the assessment order passed by the Assistant Commissioner for the year 2017-18. The dispute arose after the petitioner claimed ineligible Input Tax Credit under GSTR TRAN-I. The petitioner was issued a show-cause notice (DRC 01A) on 9th September 2023, followed by another notice in Form DRC-01 on 19th September 2023. However, the notices and the subsequent assessment order were uploaded to the “view additional notices” section of the GST portal rather than being physically served, which led to the petitioner being unaware of the proceedings.
The petitioner argued that, had they been provided an opportunity, they could have explained the discrepancies in their tax filings. Relying on a previous judgment of the Madras High Court, the petitioner requested the matter be remanded back to the adjudicating authority, with the willingness to pay 25% of the disputed tax as a gesture of compliance. The Court, considering the principles of natural justice, set aside the impugned order and allowed the petitioner to deposit 25% of the disputed tax within four weeks. Upon deposit, the assessment order would be treated as a show-cause notice, providing the petitioner an opportunity to submit objections. If the objections were filed within four weeks, the matter would be adjudicated with a hearing. If the petitioner failed to comply with the deposit or objection timelines, the assessment order would stand restored, and recovery proceedings would continue.
