Assessment Order not valid when Petitioner could not file reply due to cancellation of GST Registration

Last updated: 04 May 2024

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Quick Summary

The Kerala High Court has ruled that an Assessment Order is invalid if the taxpayer could not file a reply because their GST registration was cancelled. In this case, the petitioner's registration was cancelled just before the show cause notice was issued, preventing them from responding. The court found this violated the principles of natural justice and set aside the order, remitting the matter for reconsideration.

Court :
Kerala High Court

Brief :
The Hon'ble Kerala High Court in the case of VadakkotChackoo Devassy v. State of Kerala and Others [WP (C) No. 42265 of 2023 dated December 21, 2023] set aside the Assessment Order and remitted the matter back for reconsideration in case where the Assessee could not file the reply due to cancellation of GST Registration and issuance of show cause notice on the next day of notice in GST ASMT-10.

Citation :
WP (C) No. 42265 of 2023 dated December 21, 2023

The Hon'ble Kerala High Court in the case of Vadakkot Chackoo Devassy v. State of Kerala and Others [WP (C) No. 42265 of 2023 dated December 21, 2023] set aside the Assessment Order and remitted the matter back for reconsideration in case where the Assessee could not file the reply due to cancellation of GST Registration and issuance of show cause notice on the next day of notice in GST ASMT-10.

Facts

Vadakkot Chackoo Devassy ("the Petitioner") filed a writ petition against the Assessment Order dated November 3, 2023 ("the Impugned Order") passed under Section 73 of the Central Goods and Services Tax Act, 2017 ("the CGST Act").

The Petitioner contended that the Show Cause Notice ("the SCN") was issued on the next day of issuance of Notice in Form GST ASMT-10 and no official copy of the aforesaid documents were provided to the Petitioner. Also, the Petitioner could not file reply as the Petitioner's registration has been cancelled before issuance of the SCN.

Issue

Whether Assessment Order is valid when Petitioner could not file reply due to cancellation of GST Registration?

Held

The Hon'ble Kerala High Court in the case of WP (C) No. 42265 of 2023 held as under:

Noted that, the Petitioner was not afforded any time for filing of reply to the notice in GST ASMT-10.
Further Noted that, the Petitioner GST registration was cancelled before the said notices were uploaded in GST Portal.
Opined that, in the present case there is a violation of principles of natural justice.
Held that, the Impugned Order is set aside and the matter is remitted back for reconsideration.

OFFICIAL JUDGMENT COPY AHS BEEN ATTACHED HEREWITH

FAQ :

The main issue was whether a GST Assessment Order was valid when the taxpayer was unable to file a reply due to the cancellation of their GST registration.

The petitioner's GST registration was cancelled before the show cause notice was issued, and they were not given sufficient time to file a reply to the notice in Form GST ASMT-10.

The Kerala High Court set aside the Assessment Order and sent the case back for reconsideration, stating that the principles of natural justice had been violated.

In this context, it means the taxpayer should have been given a fair opportunity to respond to the notices and present their case before an order was passed.