Order to Be Set Aside as SCN Was Uploaded on GST Portal Without Direct Communication to Assessee | HC
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- Last Updated on 15 March, 2025
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Case Details: Tvl.Sai Ram Packaging vs. Assistant Commissioner (ST) - [2025] 172 taxmann.com 178 (Madras)
Judiciary and Counsel Details
- Mohammed Shaffiq, J.
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J. Poojesh, for the Petitioner.
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G. Nanmaran, Special Government Pleader for the Respondent.
Facts of the Case
The petitioner, engaged in the wholesale and retail business of cartons and boxes, was subjected to an assessment order under Section 73 of the CGST Act, 2017, for allegedly availing excess Input Tax Credit (ITC) due to purchases from cancelled dealers, return defaulters, and reconciliation discrepancies. The petitioner contended that the assessment order was issued without proper service of a Show Cause Notice (SCN), as it was merely uploaded on the GST portal without direct communication, violating natural justice principles. Citing similar cases where courts had remanded matters upon partial tax deposit, the petitioner expressed willingness to pay 25% of the disputed tax and sought an opportunity to submit objections.
High Court Held
The High Court set aside the assessment order, subject to the petitioner depositing 25% of the disputed tax within four weeks, with any prior payments adjusted. The order was treated as a Show Cause Notice, allowing the petitioner to submit objections with supporting documents. The tax authorities were directed to reconsider the matter and pass a fresh order after providing a reasonable opportunity of hearing. Non-compliance with the payment or submission timelines would result in the restoration of the assessment order, while any ongoing recovery proceedings, including bank attachments, would be withdrawn upon compliance.
List of Cases Reviewed
- M/s.K.Balakrishnan, Balu Cables v. O/o. the Assistant Commissioner of GST & Central Excise in W.P. (MD)No.11924 of 2024 dated 10.06.2024 – (para 4) followed
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