Matter to Be Remanded for Reconsideration Since Tax Liability Was Computed on Best Judgement Basis Without Hearing Assessee | HC

Case Details: Annalakshmi Stores v. Deputy State Tax Officer - [2024] 163 taxmann.com 469 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• G. Vardini Karthik for the Petitioner.
• C. Harsha Raj, Addl. Govt. Pleader (T) for the Respondent.

Facts of the Case

The petitioner was a registered taxable person. The GST department had issued order for cancellation of registration with retrospective effect on the ground that the petitioner had not filed his returns continuously for a period of six months. Thereafter, a show cause notice in Form GST ASMT-14 was issued by creating a temporary ID. It filed writ petition and contended that the uploading of such notice on the temporary ID did not constitute service of notice as per Section 169 of the CGST Act, 2017 and it was unaware of issuance of notice in Form GST ASMT-14.

High Court Held

The Honorable High Court noted that the tax liability against the petitioner was computed on best judgment basis by drawing on particulars available in auto-populated GSTR-2A. The taxable value was arrived at and freight and miscellaneous charges and gross profit was added thereon. This exercise was carried out without hearing the petitioner in person and considering the petitioner’s objections. Therefore, the Court held that the impugned orders and notices were to be set aside and matter was to be remanded for reconsideration.