Order to Be Set Aside as Assessee Was Unaware of SCN Due to Accountant’s Failure to Access GST Portal | HC

Case Details: D.G. Construction v. Deputy Commercial Tax Officer - [2024] 166 taxmann.com 532 (Madras)

Judiciary and Counsel Details

• Krishnan Ramasamy, J.
• Rupesh Sharma for the Petitioner.
• J.N.C. Kaushik, Addl. Govt. Pleader (Taxes) for the Respondent.

Facts of the Case

The petitioner filed writ petition to challenge the assessment order passed by the department. It was contended that the show cause notice was uploaded only on GST portal and physical notice was not served on the petitioner. It was also submitted that the petitioner was not aware of the issuance of the show cause notice since the accountant was failed to bring them about the show cause notices issued by the department.

High Court Held

The Honorable High Court noted that the petitioner came to know about the impugned proceeding initiated against him by virtue of Recovery Notice, proposing to attach the petitioner’s Bank account. The Court also noted that 20% of the disputed tax liability has already been collected by the department. Therefore, the Court held that the impugned order was liable to be set aside and the matter was remanded to the department for fresh consideration. The Court also directed the department to lift the attachment of bank account and provide opportunity of hearing to the petitioner.