Matter Remanded as Assessee Wasn’t Given Adequate Opportunity to Present His Case Before Passing Order

Case Details: Tvl.MKPO Metal Fabricators (P.) Ltd. v. Assistant Commissioner (ST) - [2024] 167 taxmann.com 717 (Madras)

Judiciary and Counsel Details

• N.Anand Venkatesh, J.
• S. Durairaj, for the Petitioner. 
• Harsha Raj, AGP for the Respondent.

Facts of the Case

In the instant case, the petitioner was engaged in the manufacturing business and the department initiated proceedings u/s 74 of the CGST Act on the ground that the petitioner filed the returns belatedly under GSTR-3B. Accordingly, final orders were passed by directing the petitioner to pay interest for the belated period to the tune of Rs.6,24,779. Hence, the petitioner was before the High Court and urged that they did not participate in the adjudication proceedings because all the notices were only uploaded in the GST portal. The petitioner came to know the order passed by the respondent only during August 2024 when they started receiving notices for recovery.

High Court Held

The High Court observed that in the instant case, it is seen that notice was issued by the department but the petitioner did not receive the same. On going through the impugned order, it is seen that a total liability of Rs.6,24,779/- towards interest has been imposed against the petitioner for filing the returns belatedly. The petitioner has come up with a clear case that without affording sufficient opportunity, the impugned order came to be passed.

Thus, the High Court held that the petitioner should be provided with a fresh opportunity to present their case. Therefore, the impugned order was set aside and the matter was remanded for reconsideration after giving an opportunity of personal hearing to the assessee. The High Court directed the petitioner to pay 10% of the total demand within a period of four weeks.