GST UPDATE

???? Desk of CA. Praveen Sharma Series-573????

MADRAS HIGH COURT INTHE CASE OF K.N. Raj Construction Section 73 of the CGST Act, 2017

?Several Writ Petitions challenging identical issues were heard together and disposed of with a common order. The petitioners contested orders dated 13.09.2023, passed by the respondent, which demanded payment of tax liabilities for the financial years 2017-18 to 2021-22. 

?The petitioners argued that they had responded to a prior notice (DRC-01A), but were unaware of the subsequent DRC-01 notice due to it being uploaded only on the GST portal, leading to ex-parte orders without an opportunity for a hearing.

?The court found that while it is the petitioners' responsibility to respond to notices uploaded on the portal, the ex-parte orders violated natural justice as the petitioners were not given a fair opportunity to present their case. Consequently, the court set aside the impugned orders and remanded the cases back to the respondent for reconsideration. The petitioners were directed to file their replies within two weeks, after which the respondent must provide a personal hearing and pass new orders on the merits. 

?The court also noted that since ?1.45 crores had already been withdrawn from the petitioners' bank account, no further conditions were imposed. The petitions were disposed of with these directions, and all connected applications were closed.

CA. Praveen Sharma

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