Bajrang & Bajrang Vs State Tax Officer (FAC)
Date: April 15, 2024
Subject Matter
Taxpayer cannot be absolved of responsibility as a registered person to monitor the GST portal
Summary
In the case of Bajrang & Bajrang Vs State Tax Officer (FAC), the Madras High Court addressed the responsibility of registered individuals to actively monitor the GST portal and respond to tax demands promptly. The petitioner challenged a tax demand order, citing age and health issues as reasons for inability to respond to notices or participate in proceedings. The court noted that an audit was conducted, the petitioner was duly informed through intimation and a show cause notice, but failed to respond with supporting documents, leading to the confirmation of the tax proposal. The court upheld the principle of accountability in tax compliance and remanded the matter, allowing the petitioner to remit 10% of the disputed tax demand and submit a reply within three weeks. The respondent was directed to reconsider the matter upon receipt of the petitioner’s reply, providing a reasonable opportunity and issuing a fresh order within two months.
The petitioner assails an order dated 29.12.2023 on the ground that a reasonable opportunity was not provided to contest the tax demand on merits.
2. The petitioner asserts that he is about 78 years old and was suffering from various illnesses. Consequently, it is stated that he was unable to respond to the show cause notice or participate in proceedings culminating in the order impugned herein.
3. Learned counsel for the petitioner submits that the petitioner would be in a position to respond to each of the five defects dealt with in the impugned order if provided an opportunity. He further submits that the petitioner is willing to remit 10% of the disputed tax demand as a condition for remand.
4. Mr. V.Prashanth Kiran, learned Government Advocate, accepts notice for the respondent. By referring to the impugned order, he points out that an audit of the petitioner’s books of account was conducted and that the intimation and show cause notice was subsequent to the issuance of the audit report to the petitioner. In these circumstances, he contends that sufficient opportunity was provided to the petitioner.
5. On perusal of the impugned order, it is evident that an audit was conducted and that an audit report dated 15.09.2023 was issued. It is also clear that an intimation and show cause notice preceded the impugned order. In these circumstances, the petitioner cannot be absolved of responsibility as a registered person to monitor the GST portal. At the same time, it is noticeable that the tax proposal was confirmed because the petitioner did not submit a reply along with supporting documents. Therefore, albeit by putting the petitioner on terms, the interest of justice demands that the petitioner be provided an opportunity.
6. Therefore, the impugned order dated 29.12.2023 is set aside and the matter is remanded for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a maximum period of three weeks from the date of receipt of a copy of this order. Within the aforesaid period, the petitioner is also permitted to submit a reply to the show cause notice. Upon receipt of the petitioner’s reply and upon being satisfied that 10% of the disputed tax demand was received, the respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within a period of two months from the date of receipt of the petitioner’s reply.
7. The writ petition is disposed of on the above terms. There will be no order as to costs. Consequently, connected miscellaneous petitions are closed.