HC Directed Assessing Officer to Provide Reasonable Opportunity to Assessee Who Failed to Participate in Proceedings

Case Details: Sri Ram Oil Mill v. Deputy State Tax Officer-1 - [2024] 160 taxmann.com 161 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • S. Rajasekar for the Petitioner.
  • T.N.C. Kaushik, AGP (T) for the Respondent.

Facts of the Case

The case of petitioner was that it had engaged services of a consultant for GST compliance and he was completely unaware of issuance of intimation or show cause notice and, therefore, could not participate in proceeding culminating into assessment order. He filed writ petition against the order and contended that he was in possession of documents to establish that purchases were genuine.

The GST Authority submitted that the impugned assessment order was preceded by an intimation, a show cause notice and personal hearing notices.

High Court Held

The Honorable High Court noted that it was evident that assessee was put to notice, albeit by uploading intimation and notices on portal, however it was equally evident that assessee did not participate in proceedings, therefore, could not place on record documents to contest reversal of ITC.

In such circumstances, it became necessary to balance interest of petitioner and revenue and therefore, the impugned order was to be set aside subject to petitioner remitting 10% of disputed tax demand, and Assessing Officer was directed to pass fresh assessment order after affording reasonable opportunity of hearing to petitioner.