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Case Details: Tvl. Arun Medicals Vs. Assistant Commissioner

Case No.: W.P. No. 28035 of 2024

Date of Order: 23.09.2024

Court: The High Court of Judicature at Madras

Judge: Hon'ble Mr. Justice Krishnan Ramasamy

Summary of the Case: Tvl. Arun Medicals filed a writ petition challenging the order dated 29.12.2023 issued by the Assistant Commissioner (ST) of Mettur Assessment Circle, Salem II. The case revolved around the mismatch between GSTR-3B and GSTR-2A for the 2017-2018 assessment year. The petitioner was unaware of the issuance of a show-cause notice through the GST portal, as they were unable to access the portal due to the cancellation of their GST registration. The petitioner requested the court to quash the order and lift the bank attachment imposed under Section 79(1)(c).

Facts of the Case:

·        The petitioner was issued a show-cause notice for discrepancies in tax liability between GSTR-3B and GSTR-2A for 2017-2018.

·        Due to the cancellation of GST registration, the petitioner did not access the GST portal and missed the show-cause notice.

·        Consequently, the bank account of the petitioner was frozen based on the impugned orders, and the petitioner only became aware of the issue upon attempting to withdraw funds from the account.

Submissions by the Petitioner:

·        The petitioner argued that they were unaware of the show-cause notice as it was only available on the GST portal, which they could not access.

·        The physical version of the order was not served.

·        The petitioner requested the court to provide them with an opportunity to present their case and committed to making a payment of 10% of the disputed tax demand for the assessment period.

Submissions by the Respondent (State Government):

·        The counsel for the state, Mr. C. Harsha Raj, agreed that the case could be remanded back for fresh consideration, provided the petitioner paid 10% of the disputed tax amount.

Findings and Judgment:

·        The court found that the petitioner was not given an opportunity for a personal hearing, which violated the principles of natural justice.

·        The court set aside the impugned orders dated 29.12.2023 and GST DRC-13 dated 19.06.2024.

·        The case was remanded to the first respondent (Assistant Commissioner) with specific directions:

1.     The petitioner must pay 10% of the disputed tax amount within four weeks.

2.     After the payment, the petitioner should file a reply/objection within two weeks, and the respondent must provide a 14-day notice for a personal hearing.

3.     Upon hearing the petitioner, appropriate orders must be passed.

4.     The bank account attachment is lifted upon compliance with the above steps.

Conclusion: The court allowed the writ petition, setting aside the impugned orders and directing the respondent to conduct a fresh assessment after affording the petitioner an opportunity for a personal hearing.

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