HC Directed AO to Issue Fresh Order After Providing Opportunity to Assessee Who Wasn’t Aware Due to Consultant’s Negligence

Case Details: Newlab F Apparels LLP v. Assistant Commissioner (ST) - [2024] 161 taxmann.com 338 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• Ms V. Vijayalakshmi for the Petitioner.
• V. Prashanth Kiran, GA (T) for the Respondent.

Facts of the Case

The petitioner was engaged in the business of retail and wholesale trading of leather apparels. The department issued notice in Form ASMT-10 to the petitioner and thereafter, an intimation and a show cause notice was also issued. It filed writ petition against the assessment order and contended that it was unaware of these proceedings because a consultant was engaged for GST compliances and such consultant did not inform the petitioner about these proceedings.

High Court Held

The Honorable High Court noted that the petitioner was a registered person under GST and explanation that he was unaware of proceedings was not convincing. However, on perusal of the impugned order, it was noted that the tax demand pertained to discrepancy between the petitioner’s GSTR 3B returns and the auto populated GSTR 2A.

Therefore, the Court held that the impugned order was set aside subject to the condition that the petitioner would remit 10% of the disputed tax demand. The Court also directed the department to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order.