Matter Remanded as Assessee Was Unaware of SCN on GST Portal Due to Accountant’s Failure to Inform

Case Details: K.N.Raj Construction v. Assistant Commissioner (ST) - [2024] 167 taxmann.com 468 (Madras)

Judiciary and Counsel Details

• Krishnan Ramasamy, J.
• R. Ezhilarasan, for the Petitioner.
• V. Prashanth Kiran, Government Adv. (Tax) for the Respondent.

Facts of the Case

The petitioner was engaged in construction business. The department issued notice demanding payment of differential amount in respect of impugned assessment periods. The petitioner submitted its reply, but without considering the said reply, the department passed ex-parte orders. It filed writ petition and contended that it had no knowledge about the notice and the impugned orders were uploaded on the GST portal. However, the physical version of such orders were not served on the petitioner.

High Court Held

The Hon’ble High Court noted that as per the principles of natural justice, the assessee should be given opportunity to file reply and attend personal hearing. However, the Court also noted that the petitioner cannot blame the Department for not furnishing a physical copy.

The Court also noted that it is the responsibility of the Assessee to appear before the Authority concerned to present the case. Therefore, the Court held that the impugned ex-parte orders were liable to be set aside and fresh orders to be passed after allowing petitioner to file reply and conducting personal hearing.