GST Demand Order Set Aside for Lack of Opportunity of Hearing due to order uploaded on View Additional Notices and Orders Tab on GST Portal
Summary in Key Points:
- Issue: Whether a GST demand order is valid when the assessee was not granted an opportunity for a personal hearing, even though the notices and orders were uploaded on the GST portal under the “View Additional Notices and Orders” tab.
- Facts: The assessee challenged a demand order, arguing that they were unaware of the proceedings as the notices and orders were uploaded on the GST portal under the “View Additional Notices and Orders” tab. The department argued that the assessee should have been aware of the notices and had not availed the opportunity for a personal hearing.
- Decision: The High Court set aside the demand order, holding that the assessee should be given an opportunity to file objections before the assessing authority, despite not responding to the notices initially.
ANALYSIS:
The High Court ruled in favor of the assessee, setting aside the impugned demand order. The court emphasized the following:
- Opportunity of Hearing: The court acknowledged that the assessee might not have been aware of the notices and orders uploaded under the “View Additional Notices and Orders” tab.
- Principles of Natural Justice: To ensure fairness and adherence to the principles of natural justice, the court granted the assessee another opportunity to respond to the demand notice.
- Right to File Objections: The court set aside the demand order and allowed the assessee to file objections before the assessing authority.
Important Note: This case highlights the importance of ensuring effective communication and providing a fair opportunity of hearing to assessees in GST proceedings. While uploading notices and orders on the GST portal is a valid method of service, it is crucial to ensure that assessees are aware of these communications. The High Court’s decision emphasizes the need to prioritize the principles of natural justice and provide taxpayers with a reasonable chance to respond to any demands or notices issued against them.
W.M.P.Nos.41870 and 41872 of 2024
(i) | Interest payment for ITC reversal |
(ii) | Excess availment of ITC |
(iii) | Expenses |
(iv) | Claim received and other income |
(v) | Sundry Creditors |
(vi) | Sundry Debtors |
(vii) | Scheme and Discount paid |
(viii) | E-way bill inward |
(ix) | E-way bill outward supplies |
(x) | Part A only Generated |
(xi) | E-way bill cancellation |
(xii) | Non-supplies |
(xiii) | Write off |
(xiv) | Electricity charges |
(xv) | Asset addition |
(xvi) | Discount and commission received |
(a) | The impugned order dated 25.06.2024 is set aside. |
(b) | The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent, within a period of four weeks from the date of receipt of a copy of this order. |
(c) | If any amount has been recovered or paid out of the disputed taxes, including by way of pre-deposit in appeal, the same would be reduced/adjusted, from/towards the 25% of disputed taxes directed to be paid. The assessing authority shall then intimate the balance amount out of 25 % of disputed taxes to be paid, if any, within a period of one week from the date of receipt of a copy of this order. The petitioner shall deposit such remaining sum within a period of three weeks from such intimation. |
(d) | The entire exercise of verification of payment, if any, intimation of the balance sums, if any, to be paid for compliance with the direction of payment of 25% of the disputed taxes, after deducting the sums already paid and payment by the petitioner of the balance amount, if any, on intimation in compliance of the above direction, shall be completed within a period of four weeks from the date of receipt of copy of this order. |
(e) | Failure to comply with the above condition viz., payment of 25% of disputed taxes within the stipulated period i.e., four weeks from the date of receipt of a copy of this order shall result in restoration of the impugned order. |
(f) | If there is any recovery by way of attachment of Bank account or garnishee proceedings, the same shall be lifted /withdrawn on complying with the above condition viz., payment of 25 % of the disputed taxes. |
(g) | On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of eight (8) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. It is made clear that if the above conditions viz., 25% of disputed taxes is not complied or objections are not filed within the stipulated period, four weeks and eight weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored. |