HC Quashed the Assessment Order As Submissions of Assessee Were Not Considered by GST Authority

Case Details: Signet Industries Ltd. v. State Tax Officer - [2024] 160 taxmann.com 460 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• G. Vardini Karthik for the Petitioner.
• T.N.C. Kaushik for the Respondent.

Facts of the Case

In the present case, the GST department conducted audit of petitioner who was manufacturer of drip irrigation sprinkler systems. After audit proceedings, the petitioner received a show cause notice, to which it responded with a CA certificate certifying turnover attributable to operations in Tamil Nadu and submitted a detailed reply to each point that forms subject of show cause notice.

Despite petitioner’s submissions, the impugned assessment order was issued stating that taxpayer did not file any objection/reply or avail of opportunity of personal hearing. It filed writ petition against the order.

High Court Held

The Honorable High Court noted that as per the impugned order, the tax payer did not file any objection/reply or avail of the opportunity of personal hearing. However, in face of chartered accountant’s certificate and petitioner’s reply, the impugned assessment order was completely unsustainable; unseasoned and was issued without application of mind.

Therefore, the Court held that the said assessment order was to be quashed and matter was remanded back for consideration. The Court also directed that the assessing officer shall provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh reasoned assessment order.