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Case Summary: Somaprasanth Karampudi Vs. Union of India
and Others
Case No.: Writ
Petition No. 14969 of 2024
Date of Order: July
29, 2024
Name of Court: High
Court of Andhra Pradesh at Amaravati
Summary of the Case: The
petitioner, Somaprasanth Karampudi, challenged the orders passed by the
respondents under the Central Goods and Services Tax (CGST) Act, 2017, alleging
a violation of the principles of natural justice. The primary dispute arose
from the cancellation of the petitioner's GST registration, followed by the
assessment and recovery of taxes for the period from October 2017 to March
2019. The petitioner argued that he was not given proper notice of the
proceedings, and as a result, he could not respond or present his case.
Facts of the Case:
1. Registration
Cancellation:
The petitioner’s GST
registration was canceled on February 21, 2019, effective from March 9, 2019,
due to non-filing of GST returns.
2. Assessment and Show
Cause Notice:
The respondents initiated
tax assessment for the period of October 2017 to March 2019. A show cause
notice dated April 22, 2022, was issued to the petitioner, demanding Rs.
46,77,312 under Section 74(1) of the CGST Act. The petitioner did not respond
to this notice.
3. Communication of
Notices:
Notices were sent to the
petitioner through both email and registered post. While the email notices were
deemed delivered, the registered post notices were returned with the remark
“Left” by postal authorities.
4. Attachment of
Property:
On May 2, 2024, the
respondents issued a notice for the attachment of the petitioner’s property in
Ongole, Prakasam District, following the confirmation of the tax demand.
Submission by Petitioner:
·
The petitioner contended that he did not
receive any of the physical notices sent by the respondents and thus was
unaware of the proceedings. He argued that the order was passed in violation of
the principles of natural justice, as he was not given a fair opportunity to
respond.
Submission by Respondent:
The respondents,
represented by Smt. Santhi Chandra, argued that the notices were sent to the
registered email address of the petitioner, which should be considered as
proper service. They maintained that the proceedings were conducted in
compliance with the law and that there was no violation of natural justice.
Findings and Decision of
the Court:
1. Service of Notices:
The court noted that
while the notices were sent to the registered email address of the petitioner,
the cancellation of the petitioner's GST registration could have led to the
petitioner not checking the registered email. The court observed that the respondents
should have taken additional steps to ascertain the petitioner’s current
address.
2. Violation of Natural
Justice:
The court found that the
ambiguity regarding the service of notices warranted giving the petitioner
another opportunity to present his case.
3. Order:
The court allowed the
writ petition, setting aside the order dated December 21, 2022, and remanding
the matter back to the respondents for re-adjudication. The court instructed
the respondents to treat the prior show cause notice as still pending and gave
the petitioner three weeks to file a response. Additionally, the petitioner was
required to pay 10% of the disputed tax as a pre-condition for filing
objections.
Conclusion: The
court concluded that the petitioner should be given an opportunity to present
his case due to the possible lapse in the service of notices. The matter was
remanded back for fresh adjudication, and the petitioner was directed to comply
with the conditions set by the court.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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