HC Remanded Matter as Assessee Was Unaware of Proceedings in View of Cancellation of Its GST Registration

Case Details: Tvl. E.Clouds v. Assistant Commissioner (ST) - [2024] 162 taxmann.com 182 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• G. Derrick Sam for the Petitioner.
• V. Prashanth Kiran , Govt. Adv. (T) for the Respondent.

Facts of the Case

The petitioner was providing power aggregation services. Due to lack of business, it opted for cancellation of registration with effect from 31.03.2023. It received order confirming tax proposal and imposing interest. It filed writ petition and contended that it was unaware of proceedings especially in view of the cancellation of the GST registration.

High Court Held

The Honorable High Court noted that the impugned order was preceded by an intimation, show cause notice and two reminders. However, on perusal of the order confirming the tax proposal, it was evident that such order pertained to discrepancies between the petitioner’s GSTR 3B return and the auto-populated GSTR 2A. Especially in view of cancellation of GST registration, the petitioner had little reason to monitor GST portal on an ongoing basis.

Therefore, the Court held that the impugned order was to be set aside and matter was to be remanded for re-consideration on condition that the petitioner remitted 10% of the disputed tax amount.