Fresh opportunity be granted for personal hearing when SCN was inadvertently sent to old address of the Assessee

Last updated: 28 June 2024

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Quick Summary

The Madras High Court has ruled that a taxpayer should be given a fresh chance to contest a tax demand on its merits. This decision was made because the Show Cause Notice (SCN) was inadvertently sent to the taxpayer's old address, preventing them from filing a reply or attending a personal hearing. Consequently, the original order was set aside, and the taxpayer was directed to submit a reply upon receiving the SCN.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in C. Ekambaram v. Assistant Commissioner of GST And Central Excise [W.P. No. 12380 Of 2024 dated June 7, 2024], held that fresh opportunity be granted for personal hearing and filing of reply when Show Cause Notice ("the SCN") was inadvertently sent to old address of the Assessee.

Citation :
W.P. No. 12380 Of 2024 dated June 7, 2024

The Hon'ble Madras High Court in C. Ekambaram v. Assistant Commissioner of GST And Central Excise [W.P. No. 12380 Of 2024 dated June 7, 2024], held that fresh opportunity be granted for personal hearing and filing of reply when Show Cause Notice ("the SCN") was inadvertently sent to old address of the Assessee.

Facts

C. Ekambaram ("the Petitioner") filed a writ petition against the Order-in-Original dated October 26, 2022 ("the Impugned Order") passed by the Revenue department ("the Respondent") on the ground that the Petitioner be granted an opportunity to contest the demand on merits as the Impugned Order was passed stating that no person was found on the address where SCN was sent as the Petitioner had shifted to new address. Also, it is stated that as the Petitioner was not registered for Service Tax purposes, the SCN was sent to the address as per the data on the Income Tax Portal which was the old address of the Petitioner.

Issue

Whether fresh opportunity be granted for filing of reply and personal hearing when SCN was inadvertently sent to old address of the Assessee?

Held

The Hon'ble Madras High Court inthe case of W.P. No. 12380 of 2024 allowed the writ petition and held that the Petitioner be granted an opportunity to the Petitioner to contest the tax demand on merit. Hence, the Impugned Order was set aside and the Petitioner was directed to file reply after the receipt of SCN.

OFFICIAL JUDGMENT COPY HAS BEEN ATTACHED

FAQ :

The Madras High Court decided that a fresh opportunity for personal hearing and filing a reply should be granted to the assessee.

The fresh opportunity was granted because the Show Cause Notice (SCN) was inadvertently sent to the assessee's old address, preventing them from responding.

The original order was set aside, and the assessee was not given a chance to contest the tax demand on merits.

The assessee has been directed to file a reply after receiving the Show Cause Notice.

The SCN was sent to the address on the Income Tax Portal, which was the assessee's old address, as they were not registered for Service Tax purposes at the time.