MakeMyTrip (India) Private Limited Vs State Tax Officer
Date: January 17, 2024
Subject Matter
Non-consideration of the reply to the show cause notice certainly prejudices the taxpayer and denies him a reasonable opportunity to establish his position
Summary
The Madras High Court considered the non-consideration of the petitioner's response to the show cause notice and emphasized the importance of due process in GST proceedings. The court set aside the impugned orders due to the non-consideration of the crucial reply and remanded the matters for reconsideration by the assessing officer, with a directive to provide a reasonable opportunity to the petitioner and issue a reasoned order within four weeks.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
All these Writ Petitions pertain to a common issue: whether the petitioner, an intermediary, is entitled to exemption from payment of GST in respect of services provided in relation to hotel accommodation if the tariff is below Rs.1,000/-. In each Writ Petition, a separate order issued in July 2023 is impugned. The challenge is on the common ground that the respondent did not take into consideration, the reply issued in June 2023 to the show cause notice in Form DRC-01.
2. Mr. V. Prashanth Kiran, learned Government Advocate, accepted notice on behalf of respondent when the matter was listed for admission. After obtaining instructions, he submits that the reply of the petitioner to the intimation issued in Form DRC-01A was taken into consideration in the impugned order, but not the reply dated 01.06.2023 to the show cause notice issued in Form DRC-01.
3. The non-consideration of the reply to the show cause notice certainly prejudices the petitioner and denies the petitioner a reasonable opportunity to establish its position. On that sole ground, the respective impugned order calls for interference.
4. Accordingly, without expressing any opinion on the merits of the matter, the orders impugned herein are quashed. As a corollary, these matters are remanded for reconsideration by the assessing officer. After providing a reasonable opportunity to the petitioner and by taking into consideration the replies of the petitioner, a reasoned order shall be issued within a period of four weeks from the date of receipt of a copy of this order.
5. These Writ Petitions are disposed of on the above terms. There will be no order as to costs. Consequently, connected Miscellaneous Petitions are closed.