GST Update

 Desk of CA. Praveen Sharma – 857 Series (CAPS) 

Madras High Court has set aside a GST assessment order in The Covai Mail case with conditional remand. The petitioner had failed to respond to the DRC-01 notice and hearings for FY 2020-21. Observing fairness, the Court directed the matter to be re-adjudicated if the petitioner deposits 50 % of the disputed tax in cash within 30 days (adjusting ?5.77 lakh already recovered). The taxpayer must also submit a detailed reply to the original notice within the same period.

Upon compliance, the department must pass a fresh order within three months, following due process and offering a personal hearing. Failure to comply will allow the authorities to resume recovery under law. The Court clarified that the deposit requirement applies only to the contested order dated 06.08.2024.

This ruling reinforces that taxpayers who miss hearing opportunities can still seek relief if they act promptly and balance equity through partial payment.

LINK: CA. Praveen Sharma on Linkedin

Regards
CAPS