2023 (12) TMI 1280 - HC - GST

Tax Credit Dispute Resolved: Deceased Staff Communication Invalidates Proceedings, Petitioner Granted Appeal Rights Within 30 Days

HC analyzed tax proceedings initiated due to input tax credit mismatch. The court recognized petitioner's challenge arising from communication sent to ... Liberty to file appeal - entertain appeal without insisting on limitation - afford an opportunity of hearing before disposal - service of communications on contact details provided by the taxpayer - assessment proceedings initiated due to input mismatch between GSTR-3B and GSTR-2ALiberty to file appeal - entertain appeal without insisting on limitation - afford an opportunity of hearing before disposal - service of communications on contact details provided by the taxpayer - Petitioner's challenge to the assessment orders was not quashed; instead the petitioner was granted liberty to file an appeal and the appellate authority was directed to entertain the appeal without insisting on limitation and to dispose it after affording an opportunity to the petitioner. - HELD THAT: - The petitioner alleged non-receipt of communications because the mobile number and email registered for notices related to the impugned proceedings belonged to employees/consultants who had since died, and thus the petitioner remained unaware of the initiation and consequential orders. The State submitted that communications were sent to the contact details provided by the petitioner and the petitioner should have engaged replacement personnel. The petitioner sought permission to agitate the matter before the Appellate Authority. The Court, after considering the submissions, did not quash the impugned assessment orders but exercised its supervisory power to grant relief by permitting the petitioner to prefer an appeal. The Court directed that the appeal be filed within thirty days from receipt of the order and that the authorities shall entertain the appeal without raising limitation as a bar, and shall decide the appeal in accordance with law after giving the petitioner an opportunity to be heard.Liberty granted to the petitioner to file an appeal within thirty days from receipt of copy of this order; appellate authority to entertain the appeal without insisting on limitation and dispose it after affording an opportunity to the petitioner.Final Conclusion: Writ petition disposed by granting the petitioner liberty to file an appeal against the assessment order for 2019-2020 within thirty days; the appellate authority to entertain the appeal notwithstanding limitation and to decide it after affording opportunity of hearing. Issues involved:The issues involved in the judgment are the initiation of impugned proceedings due to input mismatch between GSTR 3B return and GSTR 2A statement, communication regarding the proceedings sent to deceased staff members, petitioner's lack of awareness leading to bank account attachment, and the remedy available to the petitioner to appeal before the Appellate Authority.Initiation of Impugned Proceedings:The petitioner filed a Writ Petition seeking to quash the impugned proceedings dated 12.04.2023 for the assessment year 2019-2020 under Section 73 of the TNGST/CGST Act, 2017. The proceedings were initiated due to an input mismatch between GSTR 3B return and GSTR 2A statement. The petitioner claimed that communications were sent to a deceased staff member's mobile number and email address, resulting in the petitioner's lack of awareness of the proceedings until the bank account was attached.Contentions of the Parties:The petitioner's counsel argued that the petitioner was unaware of the impugned proceedings as communications were directed to deceased individuals responsible for filing returns. On the other hand, the Government Advocate (Tax) contended that communication was sent to the contact details provided by the petitioner, and it was the petitioner's responsibility to engage another accountant after the demise of the previous ones. The Government Advocate suggested that the petitioner should appeal before the Appellate Authority if aggrieved by the impugned orders.Court's Decision:After considering the submissions, the Court acknowledged the petitioner's grievance regarding the lack of awareness due to the demise of staff members responsible for filing returns. The petitioner expressed satisfaction if granted liberty to appeal before the Appellate Authority. Consequently, the Court disposed of the Writ Petition, allowing the petitioner to approach the Appellate Authority by filing an appeal within thirty days from the date of receipt of the order. The Court directed the authorities to entertain the appeal without insisting on the limitation aspect and to dispose of it after affording an opportunity to the petitioner. No costs were awarded, and the connected Miscellaneous Petition was closed.