GST UPDATE

Desk of CA. Praveen Sharma Series- 522

MADRAS HIGH COURT IN THE CASE OF Annalakshmi StoresSection 63 of the CGST Act, 2017

Several writ petitions challenge assessment orders under Section 63 of the CGST Act for specific periods. The petitioner's GST registration was retroactively canceled on 08.02.2019 due to non-filing of returns for six months. Claiming ignorance of the notices due to their upload on a temporary ID, the petitioner contends that such service does not comply with Section 169 of the GST enactments. The petitioner has paid 10% of the disputed tax to file appeals but faced issues due to the temporary ID.

The government's counsel argued that the petitioner had access to the temporary ID via their registered email and mobile number. The tax was assessed on a best judgment basis without personal hearing or considering objections, based on auto-populated GSTR-2A data.

The court ruled that the petitioner should be given an opportunity to contest the tax proposal. The petitioner is to pay 10% of the disputed tax for each period within two weeks and may seek a refund for the prior payment. The impugned orders are set aside, and the matter is remanded for reconsideration, with the petitioner allowed to respond to the show cause notice and receive a personal hearing. Fresh orders are to be issued within three months.

The writ petitions are disposed of on these terms, with no order as to costs

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CA. Praveen Sharma 

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