Petitioner gets second chance in GST assessment after failing to participate in adjudication proceedings under Section 73

The Madras HC quashed a GST assessment order dated 12.12.2023 for tax period 2017-18 involving demand of Rs. 50,11,324/-. The petitioner had failed to participate in adjudication proceedings under TNGST/CGST Act 2017, resulting in adverse order. Following established precedent, the Court conditionally quashed the order requiring petitioner to deposit 25% of disputed tax within 30 days and file reply to show cause notice. Respondent was directed to pass fresh order after hearing petitioner. Non-compliance would result in deemed dismissal of writ petition, enabling recovery under GST provisions.

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The Madras High Court, in the matter before Honourable Mr. Justice C. Saravanan, addressed a challenge to the impugned assessment order dated 12.12.2023 for the tax period 2017-18. The petitioner failed to participate in the adjudication process under the TNGST Act, 2017/CGST Act, 2017, resulting in an adverse order and a subsequent demand notice for Rs. 50,11,324/-. Relying on precedent where similar assessment orders were quashed subject to partial payment, the Court quashed the impugned order on the condition that the petitioner deposit 25% of the disputed tax within 30 days. The petitioner must also file a reply to the preceding show cause notice, with the quashed order treated as an addendum thereto. The respondent is directed to pass a fresh order on merits after hearing the petitioner, ensuring the petitioner's right to be heard.The Court clarified that failure to comply with these conditions will result in the writ petition being deemed dismissed, allowing the respondent to recover the disputed amount under the GST enactments. No costs were awarded, and connected Miscellaneous Petitions were dismissed.

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