GST: Madras High Court Quashes Ex‑Parte Assessment; Allows Fresh Adjudication on 25% Deposit
GST: Madras High Court Quashes Ex‑Parte Assessment; Allows Fresh Adjudication on 25% Deposit
M/s. Mohana Constructions (petitioner) files a petition under Article 226 of the constitution of India for issuance of Writ of Certiorarified Mandamus to call for the records on the file of the Deputy State Tax Officer (respondent) dated 06/08/2024 for the assessment year 2019-20 and to quash the same as illegal, arbitrary, and wholly without jurisdiction and influence the respondent to pass a fresh order after a sufficient opportunity.
In this Petition, the petitioner has challenged the impugned order passed by the respondent dated 06/08/2024 which preceded the following notice under the provisions of the respective GST enactments:
| S.NO | Notice | Dated |
| 1 | ASMT-10 | 25-04-2024 |
| 2 | DRC 01 | 16-05-2024 |
| 3 | Personal Hearing Notice-I | 19-06-2024 |
| 4 | Personal Hearing Notice-II | 26-06-2024 |
| 5 | Personal Hearing Notice-III | 04-07-2024 |
Despite the notice, the petitioner failed to reply to the same and thus suffered Challenged order. The petitioner says that the notices were sent through the website portal and not received by the petitioner in person and therefore, the petitioner has suffered an unfavorable order.
The Madras High Court has noticed that the petitioner is a registered firm under the provisions of the respective GST enactments and therefore cannot plead ignorance of the procedure under the provisions of the respective GST enactments and the Rules made under them.
The Court says the challenge to the impugned order on the ground that there has been a violation of the principles of natural justice and that the impugned order should be quashed cannot be countenanced. But the petitioner may have a case to argue. And considering the same and taking note of the facts, the challenged order is quashed on terms subject to the petitioner depositing 25% of the disputed tax within a period of 30 days from the date of receipt of this order.
The Challenged order stands quashed and will be treated as an attachment to the Show Cause Notice in DRC 01 dated 16/05/2024.
If in case, the petitioner fails to satisfy with any of the above mention details, then liberty will be provided to respondent to proceed against the petitioner to recover the tax due under the challenged order.