Madras HC Quashed Order Since SCN Served on Portal But Assessee Was Unable to Access Portal Due to Cancellation

Case Details: Thirumalai Sales Corporation v. Assistant Commissioner (Circle) - [2024] 161 taxmann.com 427 (Madras)

Judiciary and Counsel Details

• Krishnan RamasamY, J.
• G. Natarajan for the Petitioner.
• Mrs E. Ranganayaki, Addl. Govt. Pleader (T) for the Respondent.

Facts of the Case

The petitioner was a registered dealer under the GST Act. The GST registration of petitioner was cancelled due to non-filing of returns. Thereafter, the department issued show cause notice and personal hearing notice by uploading the same in the common GST Portal. The petitioner was not aware of the issuance of show cause notice and he did not file any reply and also not appeared for personal hearing. The department passed the order and confirmed the demand. It filed writ petition against the order.

High Court Held

The Honorable High Court noted that the petitioner’s GST registration was cancelled and he could not access portal due to cancellation of registration. The department continued to issue notice through e-Portal, which was not fair enough. The Court noted that the impugned order was passed in violation of principles of natural justice since the petitioner has not been heard before passing such order. Therefore, the Court held that the impugned orders were liable to be set aside and the matter was remanded to department for reconsideration.