Madras High Court Ruling in case of M/s. Bajrang & Bajrang; W.P No.9960 of 2024 and W.M.P No. 10982 & 10983 0f 2024
In a significant ruling, the Madras High Court has underscored the obligation of taxpayers to track the GST portal, stating that they cannot evade responsibility once registered.
Justice Senthilkumar Ramamoorthy’s bench noted that despite the completion of an audit and the provision of a GST audit report on 15.09.2023, the petitioner failed to respond with necessary documents to the intimation and show cause notice preceding the contested order. Consequently, the tax proposal was confirmed, necessitating the applicant to be given a fair opportunity, considering the principles of justice.
Of particular concern was the petitioner’s advanced age of nearly 78 years and his health issues, which allegedly hindered his ability to engage with the show cause notice or participate in the proceedings.
The petitioner expressed readiness to address the five defects outlined in the impugned order if given a chance for that and proposed remitting 10% of the disputed tax demand as a precondition for reconsideration.
The court, after careful consideration, set aside the original order and remanded the case for review, with the condition that the applicant remits 10% of the disputed tax demand within three weeks.
Crucially, the court affirmed the petitioner’s right to respond to the show cause notice. Upon receipt of the response and confirmation of the remittance, the respondent authorities are directed to provide the petitioner with a reasonable opportunity for a personal hearing and issue a fresh order within two months.
This ruling not only emphasizes the importance of taxpayer diligence but also highlights the judiciary’s commitment to ensuring fair and equitable treatment, especially for vulnerable individuals facing legal proceedings.
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