M/S. AVEXA CORPORATION PRIVATE LIMITED
V.
THE STATE OF ANDHRA PRADESH AND OTHERS
WRIT PETITION NO: 10094/2024
DATED: 19.08.2024
HIGH COURT OF ANDHRA PRADESH
Facts: The Petitioner’s GST Registration was cancelled on October 28, 2023, effective from August 31, 2023, for which an application for revocation of cancellation of GST Registration was filed on October 30, 2023. However, the same was rejected on November 24, 2023. Subsequently, the petitioner filed an appeal wherein, the appellate authority allowed the appeal on January 22, 2024, restoring the registration.
During the pendency of the restoration proceedings, the department issued an intimation on October 13, 2023, highlighting discrepancies in the Petitioner’s returns from 2017-18 to 2022-23 and demanded payment or an explanation. This was followed by another intimation under Section 74 on December 19, 2023, indicating a discrepancy of ₹31,20,23,862. Accordingly, a Show Cause Notice dated December 26, 2023 was issued, proposing to demand ₹32,51,66,267.
The Petitioner, by letter dated January 22, 2024, requested restoration of its registration, access to the department’s website, and a two-week period to respond to the SCN. Despite this, the department issued an assessment order on January 24, 2024, confirming the demand of payment of tax and penalty. Aggrieved by the premature order, the Petitioner filed the present writ petition, citing violation of principles of natural justice.
The Petitioner contended that the impugned order has been passed January 24, 2024 i.e. even before the period of 30 days had elapsed and the letter seeking time for responding to the SCN and restoration of the GST registration has been treated as a response to the SCN. Further, the presence of authorized representatives at the department for submission of the letter has been treated as availing the opportunity of personal hearing by the Petitioner.
Now the issue arises, whether the Impugned order dated January 24, 2024 passed before the 30 days’ time period provided to the Petitioner to respond to the SCN, violated principles of natural justice?
Observed that: The notice was issued on December 26, 2023 granting 30 days’ time. The impugned assessment order has been passed even before the said period has been elapsed.
Opined that, the petitioner would have to be given access to the website of the department, after restoration of registration, with adequate time being given to the petitioner to gather all the details such as e-way bills, e-invoices, etc. Such an opportunity was not given to the petitioner as the appellate authority’s order, restoring registration, was passed on 22.01.2024 and the impugned order has been passed on 24.01.2024.
Held that the impugned order dated January 24, 2024, was in violation of principles of natural justice.
Set aside the assessment order, directing the department to allow the petitioner two weeks to respond to the show cause notice, followed by a personal hearing, before issuing a reasoned order on tax and penalty.
To read more about this Judgement, subscribe today: https://taxo.online/product/taxo-pro/
Already a subscriber, Click to LOGIN & refer to the TAXO GST CASE LAWS
Or
Call us:- +91 99101 67919, 99996 93426
