Madras High Court: Assessee Must Monitor GST Portal

Madras High Court: Assessee Must Monitor GST Portal

The Madras High Court has ruled that registered individuals cannot be relieved of the duty to monitor the GST portal.

Justice Senthilkumar Ramamoorthy has noted that an audit was conducted, resulting in an audit report dated 15.09.2023. Prior to the impugned order, an intimation and show cause notice were issued. Notably, the tax proposal was confirmed due to the petitioner's failure to submit a reply with supporting documents. Consequently, to ensure fairness, the petitioner should be given an opportunity after being informed of the terms.

The petitioner/assessee, aged approximately 78 years, was afflicted with several illnesses, rendering him unable to address the show cause notice or engage in the proceedings.

The petitioner argued that they would be able to address each of the five defects outlined in the impugned order if given a chance. Additionally, the petitioner is prepared to pay 10% of the disputed tax demand as a condition for reconsideration.

The department argued that an audit of the petitioner's books of account was conducted, and the intimation and show cause notice were issued after the audit report was provided to the petitioner. Sufficient opportunity was afforded to the petitioner.

The court nullified the order and remanded the matter for reconsideration, with the condition that the petitioner must pay 10% of the disputed tax demand within a maximum period of three weeks, as previously agreed.

The court allowed the petitioner to submit a reply to the show cause notice. Upon receiving the petitioner's reply and confirming receipt of 10% of the disputed tax demand, the

Court directed the respondent to grant the petitioner a reasonable opportunity, including a personal hearing, and issue a fresh order within two months from the date of receiving the petitioner's reply.