In W.P. No.18351 of 2023 -MADR HC- Madras High Court upholds assessment order under TN GST Act due to Assessee's failure to cooperate
Justice Anita Sumanth [20-06-2023]

Read Order: Mohanan Gnansekar V. The State Tax Officer

Chahat Varma

New Delhi, July 12, 2023: In a recent case, the Madras High Court has ruled that during assessment proceedings, it is the responsibility of the assessee to cooperate and respond effectively to show-cause notices and avail of the opportunity for a personal hearing. The petitioner in this case failed to fulfil these obligations. As a result, the court found no legal infirmity in the procedure followed by the assessing authority while passing the impugned order under the Tamil Nadu Goods and Services Tax Act, 2017.

Briefly stated, the petitioner, a sole proprietary, had challenged an assessment order issued under Section 74 of the Tamil Nadu Goods and Services Tax Act. The petitioner argued that the assessment order violated the principles of natural justice.

The single-judge bench of Justice Anita Sumanth observed that the petitioner had full knowledge of the issues raised against them, and the notices issued were detailed enough to provide a clear understanding of the points that required a response.

The bench further noted that the impugned order, issued under GST DRC 07 on 12.04.2023, was passed due to the absence of any supporting materials as promised by the petitioner and his failure to appear during the scheduled personal hearing on 05.04.2023. As a result, the assessing authority proceeded to confirm the proposals made.

In light of these circumstances, the court upheld the assessment order and dismissed the writ petition. The petitioner was advised to explore available alternate remedies as per the applicable law.