Court overturns tax demand due to lack of proper notification on GST portal, allowing company to contest the claim.

A recent court case concerning a taxpayer who challenged a tax demand due to a lack of proper notification.

The Case:

A company (the petitioner) received an order demanding tax payment but argued they weren't given a fair chance to contest it. They claimed the show cause notice and other communications were only uploaded on the GST portal and not sent through any other means.

The Issue:

The crux of the case lies in the concept of "natural justice." This legal principle ensures that a person has a fair opportunity to be heard before a decision is made affecting their rights. Uploading the notice solely on the GST portal, without any other form of communication, raised concerns about whether the petitioner was truly aware of the proceedings.

The Court's Decision:

The court acknowledged that the petitioner might not have been aware of the tax demand due to the limited notification method. To ensure fairness, the court decided to:

• Set aside the original tax order.
• Allow the petitioner to submit a reply to the show cause notice.
• Grant the petitioner a personal hearing to contest the tax demand.
• Require the tax authorities to issue a new order within three months after receiving the petitioner's response.

GST Case Law  Tvl. Annai Earth Movers Versus The Assistant Commissioner 

Citation-2024 TAXONATION 1419 (MADRAS)

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