The Madras High Court while remitting the issue back to the Adjudicating Authority ruled that a personal hearing to the taxpayer must before the cancellation of GST Registration.
The petitioner, Tvl.Vectra Computer Solutions has registered themselves on the file of the Assistant Commissioner. The petitioner was filing returns under the Tamil Nadu Value Added Tax Act, 2006 and subsequently, under the GST regime also. The petitioner’s registration was canceled on September 6, 2018, on the ground of non-filing of returns. The said defect was subsequently rectified by the petitioner. The petitioner also remitted GST dues to the tune of Rs.66,781/- together with the late fee.
The petitioner received notice in which certain defects have been pointed out. The defect includes sales omission and purchase omission also. It was also proposed to levy tax on service charges paid and discount paid. For the reasons best known to the petitioner, no reply was submitted. Thereafter, the impugned order came to be passed levying tax and penalty on the petitioner.
The petitioner highlighted Section 75(4) of the Central Goods and Service Tax Act, 2017 which states that an opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.
The Single Judge Bench of Justice G.R.Swaminathan said that nowhere in the said notice, the personal hearing has been afforded to the petitioner herein. In the impugned order also, it is nowhere mentioned that such opportunity was afforded to the petitioner.
The court remitted the matter to the file of the State Tax Officer to pass orders afresh in accordance with the law.
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