Madras High Court directs fresh assessment due to SCN uploaded in ‘Additional Notices’ Tab in GST Portal instead of under Notices’ Tab 

Bombay Hardware Pvt Ltd Vs Assistant Commissioner (ST) 

In a recent case of Bombay Hardware Pvt Ltd Vs Assistant Commissioner (ST), the Madras High Court delivered a significant judgment directing the GST Department to issue a fresh assessment order. The petitioner sought to quash an order dated 18.12.2023, alleging a violation of natural justice principles.

The crux of the petitioner’s grievance lies in the irregular posting of the show cause notice in the “View Additional Notices” tab instead of the usual “View Notices” tab on the GST portal. This discrepancy deprived the petitioner of the opportunity to effectively contest the proceedings. Additionally, the petitioner had paid 10% of the tax demanded by the respondent, further underscoring their commitment to resolving the matter judiciously.

Drawing precedent from a similar case, Sabari Infra Pvt. Ltd. Vs Assistant Commissioner (ST), wherein the Madras High Court emphasized the importance of affording a fair opportunity to the petitioner, the court ruled in favor of the petitioner. The judgment mandates the respondent Department to conduct an enquiry and issue a fresh assessment order within eight weeks, aligning with legal procedures.

Full Text Of The Judgment/Order Of Madras High Court

The writ petition has been filed to quash the order dated 18.12.2023 in reference No.ZD331223123636Q on the ground that the proceedings have taken place violating the principles of natural justice.

2. Heard Mrs. Hema Muralikrishnan, learned counsel for the petitioner and Mr. K. Vasanthamala, learned Government Advocate for the respondent.

3. The grievance of the petitioner is that show cause notice has been posted in the “View Additional Notices” tab, instead of “View Notices” tab, which is the normal practice. The petitioner would have had an opportunity to contest the proceedings effectively, if it was posted in the “View Notice” tab. On 17.05.2024, the petitioner has also paid 10% of the tax demanded by the first respondent in the impugned order.

4. She has also placed reliance on the decision of this Court in the case of Sabari Infra

Pvt. Ltd. /vs/ Assistant Commissioner (ST) in W.P.Nos.22369, etc., of 2023 dated

31.07.2023 reported in 2023(10) Centax 92 (Mad.) , wherein similar circumstances, this Court has held that the petitioner should be given a fair opportunity and the matter was remitted back to the Department to pass a fresh assessment order, after hearing the writ petitioner.

5. Following the decision passed by this Court in the above writ petition in WP. Nos.22369, etc., dated 31.07.2023, I am inclined to allow the writ petition with the following directions:

(i) the writ petition is allowed and the order dated 18.12.2023 in reference No. ZD331223123636Q passed by the respondent is set aside.

(ii) the petitioner shall be called for an enquiry by the respondent Department and the respondent shall pass a fresh Assessment Order in accordance with law within a period of eight weeks from today.

Consequently connected miscellaneous petitions are closed. No costs.