Kayram Builders Vs Deputy state Tax Officer-I (Madras High Court)
Kayram Builders Vs Deputy State Tax Officer-I dealt with a challenge by the petitioner against an assessment order issued under the GST Act for the financial year 2019-2020. The petitioner contended that the order, dated August 20, 2024, was passed without issuing proper notices or conducting a personal hearing. Notices were uploaded only on the GST portal under the “Additional Notices” tab, which the petitioner claimed they did not access. The case highlighted procedural lapses and invoked principles of natural justice.
The petitioner argued that they had already paid 50% of the disputed tax liability but under the wrong tax head. The impugned demand arose from discrepancies between FORM GSTR-1 and GSTR-3B filings. The petitioner sought the quashing of the assessment order, asserting that proper notice and hearing would allow them to present relevant evidence and defend their position effectively.
Judicial Proceedings:
The respondent, represented by the Additional Government Pleader, admitted that the payment under the wrong tax head contributed to the dispute. However, they argued that the petitioner should deposit an additional 10% of the remaining 50% disputed amount before reconsideration. The Court acknowledged the submissions from both parties and examined the procedural irregularities in the issuance of the impugned order.
The Madras High Court observed that the assessment order was passed without providing an opportunity for the petitioner to be heard, thereby violating the principles of natural justice. Citing established judicial precedents, the Court reiterated the importance of fair procedures, including personal hearings, in ensuring justice under the GST framework.
