2025 (6) TMI 2026 - HC - GST

Violation of principles of natural justice - petitioner unaware of the fact that the impugned order had been passed - cancellation of registration of petitioner - HELD THAT - Having considered the submissions made by the learned counsel for the petitioner and the learned Additional Government Pleader for the respondent it is inclined to come to the rescue of the petitioner subject to the petitioner depositing 25% of the disputed tax in cash with the respondent within a period of 30 days from the date of receipt of a copy of this order. Subject to the above compliance the impugned assessment order dated 11.10.2023 shall stand quashed. The impugned order which is the subject matter of the present writ petition shall be treated as corrigendum to the show cause notice dated 03.07.2023. The petitioner shall file a reply to the same within a period of 30 days from the date of receipt of a copy of this order - petition allowed.

Summary

The Madras High Court, through Justice C. Saravanan, allowed the writ petition challenging the respondent's order dated 11.10.2023 (Reference No. ZD331023060399K) relating to GST assessment for the period July 2017 to March 2018. The petitioner, whose GST registration was cancelled on 30.06.2021, contended that the impugned order was passed without proper notice, violating the principles of natural justice, as the show cause notice dated 03.07.2023 went unnoticed due to cessation of business.The Court noted the respondent's reliance on the Supreme Court decision in Assistant Commissioner (CT), LTU, Kakinada v. M/S. Glaxo Smith Kline Consumer, Health Care Limited (Civil Appeal No. 2413 of 2020), but found merit in the petitioner's plea for an opportunity to represent the case afresh.Key holding: The Court quashed the impugned assessment order dated 11.10.2023, subject to the petitioner depositing 25% of the disputed tax within 30 days. The impugned order was directed to be treated as a corrigendum to the show cause notice, allowing the petitioner 30 days to file a reply. The respondent was directed to pass final orders on merits within two weeks thereafter.The Court clarified that if the demand is dropped, the deposited amount shall be refunded. The writ petition was allowed with no costs, and connected miscellaneous petitions were closed.