GST Demand Order Set Aside as Assessee was Unware of Show Cause Notice due to uploaded on view additional notices and orders Tab on GST Portal
Summary in Key Points:
- Issue: Whether a GST demand order passed without granting the assessee an opportunity for a personal hearing is valid.
- Facts: The assessee challenged a demand order issued based on discrepancies found in their GST returns. The assessee claimed that they were unaware of the show cause notice and the subsequent order as these were uploaded on the GST portal under the “view additional notices and orders” tab. The assessee requested an opportunity to explain the discrepancies.
- Decision: The High Court set aside the demand order and directed the authorities to treat it as a show cause notice, granting the assessee an opportunity to respond and present their case.
Decision:
The High Court ruled in favor of the assessee, setting aside the impugned demand order. The court emphasized the following:
- Lack of Awareness: The assessee’s claim of being unaware of the notices and orders uploaded on the GST portal was considered plausible.
- Violation of Natural Justice: The court recognized that denying the assessee an opportunity to be heard violated the principles of natural justice.
- Opportunity to Respond: The court directed that the impugned order be treated as a show cause notice, granting the assessee a chance to respond and explain the discrepancies.
- Fairness and Transparency: This decision ensures that the assessee is given a fair opportunity to present their case and ensures transparency in the GST proceedings.
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.39344, 39345 and 39346 of 2024
(a) | The petitioner shall deposit 25% of the disputed tax within a period of two weeks from the date of receipt of a copy of this order. |
(b) | 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 four weeks from the date of receipt of a copy of this order along with supporting documents/material. |
(c) | If any such objections are filed, the same shall be considered by the respondents and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. |
(d) | If the above deposit is not paid or objections are not filed within the stipulated period, i.e., two weeks and four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand revived. |