Case Law Details
Malaysia Metals Vs Assistant Commissioner (ST) (FAC) (Madras High Court)
In the case of Malaysia Metals vs Assistant Commissioner (ST) (FAC), the Madras High Court addressed a crucial issue regarding the unreceived GST ASMT 10/DRC-01 notices. The petitioner, engaged in wholesale and retail trading, contested the tax demand, claiming lack of prior opportunity.
The petitioner argued that they weren’t afforded a reasonable opportunity to contest the tax demand as they were unaware of the proceedings initiated through notices in Forms GST ASMT 10 and DRC-01. Despite the petitioner’s assertion of entitlement to file the annual return, the impugned order was issued prematurely.
On behalf of the government, it was argued that multiple opportunities were provided to the petitioner, but it was undisputed that the petitioner wasn’t heard before the order was issued due to their failure to respond to the notices.
The court, considering the lack of prior hearing, set aside the impugned order and remanded the matter for reconsideration, with the condition that the petitioner remits 10% of the disputed tax demand. The petitioner was also granted the opportunity to reply to the show cause notice within 15 days. Once the respondent verifies the payment and receives the petitioner’s reply, a fresh order must be issued within two months.
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