GST Dept to consider reply filed by assessee through post and not portal : Madras High Court

GST Dept to consider reply filed by assessee through post and not portal : Madras High Court

Directs it to fix the personal hearing date for the petitioner

The Madras High Court has held that the Goods and Services (GST) department should reply to a show-cause notice even if sent by the assessee through the post and not the portal.

The single-judge bench of Justice M. Nirmal Kumar rejected the objection of the department that the postal/physical reply to them would not be considered. It directed the department to give an opportunity for a personal hearing to the petitioner and peruse the submitted documents.

The petitioner had contended that the notice was issued to him for revoking the erroneous refund claim. He sent a reply that was received by the respondent. It was verified through the department's tracking system and the letter received from the department by post.

The petitioner had received the adjudication order passed by the respondent, wherein it stated that, as a part of the principles of natural justice, a personal hearing was offered to the petitioner. The adjudication order was passed since no one appeared.

The petitioner contended that he sent a hard copy of the response to the notice, which was not considered. He maintained, as per the Central Goods and Service Tax (CGST) Act, 2017, it was held that "an opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such a person".

However, the petitioner was not given an opportunity of being heard. He submitted that the personal hearing notice was not sent to the portal register of the respondents beyond the period of 30 days (January 8, 2022) by post.

The department contended that as per the CGST Act, the circumstances under which the notice was to be served were stated. One such mode was email. The personal hearing details were posted on the portal by sending a communication to the email address provided at the time of registration of the assessee/dealers and by making the information available on a common portal. Likewise, notices were sent through email.

Meanwhile, the petitioner produced a screenshot of the details available on the portal on 20 August 2022. It showed a show-cause notice under Sections 73 and 74 and GST DRC-01 was initiated and issued on 30 November 2021. The due date for replying was 30 December 2021. This confirmed the absence of a personal hearing.

The bench held that the only objection the department had was that the postal or physical reply was not considered since it was not sent online. The court directed the respondent to fix the personal hearing date for the petitioner. It stated that he should be allowed to produce documents, if any, and, thereafter, could be sent a notice.