2023 (7) TMI 1339 - HC - GST

Cancellation of GST registration of petitioner - petitioner has neither filed any reply nor appeared for a personal hearing - HELD THAT - Although the petitioner was required to file a reply on or before 29.12.2022 at 11.00 a.m. and thereafter on or before 15.02.2023 pursuant to a reminder notice dated 09.02.2023 the fact remains that the petitioner has sent a reply manually which has been acknowledged by an Officer of the Department on 20.02.2023 - The respondent should have stated that the petitioner should file a reply only through portal and the manual copy of the reply cannot be accepted before passing the impugned Assessment Order. Having received the reply on 20.02.2023 before passing the impugned order the respondent should have adverted to the same. The petitioner may or may not have a case on merits. However reply ought to have been examined and considered while passing the impugned order. The impugned Assessment Order is liable to be quashed. The case has to be remitted back to the respondent to pass a fresh order on merits and in accordance with law after duly considering the reply of the petitioner dated 20.02.2023.

Summary

Issues:
The judgment involves the challenge to an Assessment Order in GSTN, suspension of GST registration, failure to reply and appear for a personal hearing, and the requirement for the reply to be considered before passing the Assessment Order.

Assessment Order Challenge:
The petitioner challenged the impugned Assessment Order dated 25.05.2023/26.05.2023, which confirmed the demand proposed in the Show Cause Notices issued under Section 73(1) of the TNGST Act, 2017. The respondent had suspended the petitioner's GST registration on 02.01.2023, but later revoked the proposal for cancellation. The Assessment Order noted that the petitioner had neither filed a reply nor appeared for a personal hearing.

Failure to Reply and Appear:
The respondent had sent a reminder to the petitioner on 09.02.2023 to reply to the Show Cause Notices and appear for a personal hearing on 15.02.2023. The petitioner failed to upload the reply on time but submitted it manually on 20.02.2023. The court observed that the reply, although manual, should have been considered before passing the Assessment Order.

Consideration of Reply:
The court found that the respondent should have accepted the manually filed reply before passing the Assessment Order. The petitioner's reply, dated 20.02.2023, should have been examined and considered before confirming the demand. The Assessment Order was deemed liable to be quashed, and the case was remitted back to the respondent for a fresh order on merits after duly considering the petitioner's reply.

Remedy and Further Proceedings:
The court directed the respondent to upload the manually filed reply in the portal for records and to give the petitioner an opportunity to be heard in the de novo proceedings. The respondent was instructed to complete the proceedings within 45 days from the date of the order. The petitioner was scheduled to appear for a first hearing on 14th August 2023 and was allowed to file additional reply/representation before that date. The Writ Petition was allowed with no costs, and connected Writ Miscellaneous Petitions were closed.