REPLY TO SHOW CAUSE NOTICE IN GST TO BE CONSIDERED EVEN IF SENT BY POST & NOT THROUGH PORTAL: MADRAS HIGH COURT

REPLY TO SHOW CAUSE NOTICE IN GST TO BE CONSIDERED EVEN IF SENT BY POST & NOT THROUGH PORTAL: MADRAS HIGH COURT

In the case of Asia (Chennai) Engineering company Private Limited Vs Assistant Commissioner, The Hon’ble Madras High Court held that GST Dept. To Consider Reply to SCN even it is sent by Assessee Through post and Not GST Portal.

FACTS

The Asia (Chennai) Engineering company Private Limited (“The Petitioner”) contended that the show cause notice was issued to the petitioner for revoking the erroneous refund claim. The petitioner sent a reply which has been received by the respondent. It could be seen through the tracking of the postal department as well as the letter from the postal department. The petitioner had received the adjudication order passed by the respondent, wherein it is stated that, as a partof the principles of natural justice, a personal hearing was offered to the petitioner, and since no one appeared, an adjudication order was passed.

The petitioner contended that he had sent a hard copy of the reply to the show cause notice, which was not considered. As per Section 75(4) of the CentralGoods and Service Tax Act, 2017, it is clearly held that “an opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against the such person”.When the adjudication officer, on completion of adjudication, decides to impose a penalty or any penalty imposed against the assessee,naturally, an opportunity is given. However, the petitioner was not given an opportunity to. The petitioner submitted that the personal hearing noticewas not sent to the portal register of the respondents beyond the period of thirty days on January 8, 2022, by postal.

The department contended that as per Section 169, the circumstances under which the notice has to be served are stated in which one of the modes is through email. The personal hearing details have been posted on the portal by sending a communication to the email address provided at the time of registration of the assessee/dealers and by making the information available on a common portal. Likewise, notices have been sent through email.

The petitioner in support of his contention produced a screenshot of the details available in the portal on 20.08.2022 wherein it shows a show cause notice under Section 73 and 74and GST DRC-01 was initiated and issued on 30.11.2021 and the due date to reply is on 30.12.2021, confirming the refusal of personal hearing details.

HELD BY COURT

The court held that the only objection of the department is that the postal or physical reply was not considered since it was not sent through a portal. The petitioner deserves a personal hearing so that can be heard.This case is for erroneous refund. In such circumstances, it would be appropriate that personal hearing is given and the documents considered, thereafter the Department to proceed further. In view of the same, the Department to give opportunity of personal hearing to the petitioner, hear the objections, peruse the documents submitted and the explanations.

The court directed the respondent to fix the personal hearing date for the petitioner, give him an opportunity to receive any documents if produced, anand thereafter proceed with the show cause notices.