GST Vidhi | GST Case Law

Case Summary: M/s. Frontline Engineering Services vs. The Deputy State Tax Officer-II, Loan Square Assessment Circle & Others

Case No.: W.P. No. 27506 of 2024 & W.M.P. Nos. 30015, 30017 & 30018 of 2024

Date of Order: 13th September 2024

Court: High Court of Judicature at Madras

Judge: Hon'ble Mr. Justice Krishnan Ramasamy

Summary of the Case: M/s. Frontline Engineering Services filed a writ petition challenging the GST assessment order issued by the Deputy State Tax Officer-II for the assessment year 2018-2019. The petitioner contended that the orders were passed without affording them an opportunity of hearing, which violated the principles of natural justice. The court set aside the impugned orders and directed the respondent to provide a personal hearing to the petitioner before passing fresh orders.

Facts of the Case

1.     The petitioner, M/s. Frontline Engineering Services, is a small business concern engaged in providing engineering services.

2.     The GST department issued an order on 25th April 2024, along with a summary order in Form GST DRC-07, under Section 73 of the CGST/TNGST Act, 2017. The petitioner was not aware of the notices and communications uploaded on the GST portal.

3.     Due to this lack of awareness, the petitioner failed to file a reply within the stipulated time, and the respondent passed the impugned orders without granting a personal hearing to the petitioner.

4.     The petitioner claimed that they had already deposited more than 10% of the disputed tax amount before the GST authorities.

Submissions by the Petitioner:

1.     The petitioner argued that being a small business concern, they were not aware of the notices uploaded on the GST portal, and hence, they could not respond to the notices.

2.     The petitioner contended that the orders were passed without granting them a proper opportunity to be heard, which violated the principles of natural justice.

3.     The petitioner further submitted that they had already deposited more than 10% of the disputed tax amount.

Submissions by the Respondent:

·        The respondent’s counsel supported the impugned orders and argued that the proceedings were conducted lawfully according to the provisions of the GST Act.

Findings and Judgment:

1.     The court noted that the orders were passed without providing the petitioner with a personal hearing, which violated the principles of natural justice.

2.     The court observed that the petitioner had already deposited more than 10% of the disputed tax amount.

3.     The court set aside the impugned orders and directed the respondent to provide the petitioner with an opportunity to file their reply/objection within two weeks from the date of receipt of the court's order.

4.     The respondent was instructed to provide a 14-day notice for a personal hearing and pass a fresh order on merits after considering the petitioner’s submission.

5.     The attachment notice issued by the respondent was also lifted as a result of the court's decision.

Conclusion: The court set aside the impugned GST orders and directed the respondents to reconsider the case after providing the petitioner with a personal hearing and allowing them to file their objections.

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