Marson Industries Vs Deputy Commercial Tax Officer (Madras High Court)
Madras HC Sets Aside Order & SCN: Merely uploaded on GST Portal i.e. Not Served Outside of GST Portal
Marson Industries recently found themselves embroiled in legal proceedings against the Deputy Commercial Tax Officer concerning assessment periods 2018-2019 and 2019-2020. The crux of the matter revolves around the lack of communication regarding GST proceedings, ultimately leading to the Madras High Court intervening and setting aside the orders in question.
The petitioner, Marson Industries, raised a crucial point regarding their unawareness of the proceedings that led to the contested orders. They emphasized that the show cause notice and assessment order were uploaded solely on the GST portal’s “View Additional Notices and Orders” tab, failing to reach them through any other means. This lack of direct communication deprived them of the opportunity to participate effectively in the proceedings.
Furthermore, the petitioner’s counsel highlighted discrepancies in the interest liabilities mentioned in Form GSTR DRC-03 and subsequent payments made by Marson Industries. The court noted that the impugned orders were issued without affording the petitioner a fair hearing, further supported by the payment receipts provided by Marson Industries.
Acknowledging these lapses, the court deemed it appropriate to set aside the orders and remand the matters to the respondent for reconsideration. Marson Industries was granted a window of 15 days to respond to the show cause notices, after which the respondent was directed to provide a reasonable opportunity for a personal hearing. The court mandated the issuance of fresh orders within two months from the receipt of Marson Industries’ reply.
