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Case Details: M/s Peritus Solutions Private Limited Vs. The
Commercial Tax Officer, Velachery Assessment Circle, Chennai
Case No.: W.P.
No. 22368 of 2024
Date of Order: 13th
August 2024
Name of Court: High
Court of Judicature at Madras
Summary of the Case: The
petitioner, M/s Peritus Solutions Private Limited, sought to quash an order
passed by the Commercial Tax Officer related to tax liabilities for the
financial year 2017-18. The petitioner argued that they were not properly
notified, as the notices were uploaded to an obscure section of the GST portal,
resulting in a violation of natural justice. The court agreed with the
petitioner, set aside the order, and remitted the matter back to the respondent
for reconsideration.
Facts of the Case:
1. The respondent issued
a show cause notice and subsequent orders related to tax liabilities for the
financial year 2017-18.
2. The petitioner argued
that the notices were uploaded under the "View Additional
Notices/Orders" tab of the GST portal, which they did not check.
3. The petitioner's GST
registration had been cancelled on 31st August 2020, and they were unaware of
the notices.
4. The petitioner only
discovered the order after it had been passed, without any opportunity to
present their case.
Submission by Petitioner:
The petitioner claimed
that the show cause notice and the impugned order were uploaded in an obscure
section of the GST portal, which they did not view. As a result, they were
denied the opportunity to respond or appear for a personal hearing. The petitioner
also mentioned that their GST registration was inactive during the notice
period and that they had already paid 10% of the disputed tax.
Submission by Respondent:
The respondent argued
that the notices were duly uploaded on the GST portal and the petitioner failed
to appear for the personal hearing. However, the respondent was willing to
comply with any direction from the court and proposed remitting the matter back
for fresh consideration.
Findings and Judgement of
Court:
The court observed that
the notices were uploaded in a section of the portal that the petitioner had no
occasion to view, thus violating the principles of natural justice. The court
set aside the impugned order, highlighting that no order should be passed
without providing adequate opportunities to the petitioner.
Conclusion: The
court quashed the impugned order dated 18th April 2024 and remitted the matter
back to the respondent for reconsideration. The petitioner was directed to file
a reply within two weeks, and the respondent was instructed to schedule a
personal hearing, providing a 14-day notice, and then pass a fresh order on
merits.
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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