HC Remanded Matter Since Consultant of Assessee Hadn’t Informed Him About Initiation of Proceedings

Case Details: Tvl. Bharathi Electricals v. State Tax Officer - [2024] 161 taxmann.com 428 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• P.R. Kumar for the Petitioner.
• V. Prashanth Kiran, GA (T) for the Respondent.

Facts of the Case

The petitioner was engaged in trade of electrical goods. The department passed an assessment order and the petitioner challenged the order on the ground that it was not provided a reasonable opportunity to contest the tax demand. It filed writ petition against the order and contended that his consultant had not brought to his knowledge initiation of proceedings against him.

High Court Held

The Honorable High Court noted that the petitioner was under an obligation to monitor GST portal on an on-going basis. However, it was also a fact that the tax demand was confirmed without the petitioner being heard. The Court also noted that the petitioner had also remitted 10% of the disputed tax demand.

Therefore, the Court held that the impugned order was to be set aside solely for purpose of providing the petitioner with an opportunity to contest tax demand. The Court also directed the department to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within two months from the date of receipt of the petitioner’s reply.