2024 (5) TMI 358 - HC - GST

Violation of principles of natural justice - non-service of SCN - notices that preceded the assessment order and the impugned order were uploaded on the GST portal but not served on the petitioner through any other mode - cancellation of petitioner s registration - HELD THAT - The petitioner has placed on record the document indicating the cancellation of registration with effect from 30.03.2019. Since it appears that the registration was cancelled it cannot be expected that the petitioner should monitor the GST portal in the same manner as a registered person. However learned Government Advocate submits on instructions that the show cause notice was also sent to the petitioner by e-mail. The petitioner has also placed on record the reminder dated 20.12.2023 which indicates that the petitioner accessed the portal. The petitioner agrees to remit 10% of the disputed tax demand as a condition for remand - it is just and appropriate that the petitioner be provided an opportunity to contest the tax demand albeit by putting the petitioner on terms. The impugned order is quashed subject to the petitioner remitting 10% of the disputed tax demand as agreed to within fifteen days from the date of receipt of a copy of this order - Petition disposed off.

Summary

Issues involved:
Challenge to assessment order based on breach of principles of natural justice and non-service of notices.

Summary:
The petitioner, a registered person under GST enactments until registration cancellation, challenges an assessment order dated 25.12.2023 for lack of natural justice principles. The impugned order and preceding notices were uploaded on the GST portal but not served through any other mode. Petitioner argues non-monitoring of portal post-cancellation and absence of current business operations. Notified reply deadline in reminder-1 precedes impugned order issuance.

The Government Advocate states that the show cause notice was served via e-mail, noting petitioner's portal access. Despite registration cancellation, petitioner's portal activity is acknowledged. Petitioner furnishes proof of registration cancellation and portal access on 20.12.2023.

Upon agreement to remit 10% of disputed tax demand, petitioner is granted the opportunity to contest the tax demand with specified conditions. The impugned order is quashed subject to the mentioned conditions, allowing petitioner to reply to the show cause notice within the stipulated period. Respondent is directed to provide a reasonable opportunity for the petitioner, including a personal hearing, and issue a fresh order within two months from the petitioner's reply receipt.

The Writ Petition is disposed of with no costs, and related Writ Miscellaneous Petitions are closed accordingly.