M/s. Summit Exim
vs. The Assistant Commissioner (ST), Muthialpet Assessment Circle
Case Number: W.P. No.35634 of 2024
Court: High Court of Judicature at Madras
Date of Order: 29.11.2024
Presiding Judge: Honourable Mr. Justice Mohammed Shaffiq
Summary of the Case:
The petitioner
sought to quash an assessment order dated 25.05.2024 under the GST Act, 2017,
claiming it was not served via proper channels, resulting in a lack of
opportunity to respond. The court provided conditional relief by setting aside
the assessment order, directing the petitioner to deposit 25% of the disputed
tax, and treating the order as a show cause notice (SCN) for reconsideration.
Facts of the Case:
1.
Business
Activity:
o The petitioner,
M/s. Summit Exim, is engaged in the import and export of various goods and is
registered under the GST Act.
2.
Cause
of Action:
o For the
financial year 2020–21, the petitioner filed GST returns and paid applicable
taxes.
o A scrutiny of
monthly returns revealed discrepancies, including alleged short payment of
taxes due to excess ITC claims and mismatches between GSTR-3B and GSTR-2A/2B.
3.
Notices
Issued:
o An intimation
(ASMT-10) was issued on 02.05.2023, followed by a notice (DRC-01) on
28.08.2023.
o A personal
hearing was scheduled for 07.09.2023, which the petitioner did not attend.
4.
Service
of Orders:
o The petitioner
argued that the assessment order was uploaded on the GST portal without proper
service, leaving them unaware of the proceedings.
Submissions: By
the Petitioner:
- Claimed
procedural lapses, including improper service of the order, violating
principles of natural justice.
- Sought
an opportunity to explain alleged discrepancies.
- Expressed
readiness to deposit 25% of the disputed tax for reconsideration.
Submissions:By
the Respondents:
- The
Government Advocate did not object to the petitioner's request for
reconsideration upon payment of 25% of the disputed tax.
Findings and Judgment:
1.
Procedural
Irregularities:
o The court
acknowledged that the petitioner was not given adequate notice and an
opportunity to defend.
2.
Relief
Granted:
o The assessment
order dated 25.05.2024 was set aside.
o The petitioner
was directed to deposit 25% of the disputed tax within four weeks.
o The impugned
order was to be treated as a fresh SCN, requiring the petitioner to file
objections within four weeks.
3.
Consequences
of Non-Compliance:
o If the
petitioner failed to deposit the amount or file objections within the
stipulated timeframe, the assessment order would be restored.
Conclusion:
The judgment
emphasized adherence to principles of natural justice and procedural fairness
under the GST Act, ensuring taxpayers are given a reasonable opportunity to
respond to discrepancies.
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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