Allahabad High Court Quashes Ex Parte GST Assessment for SCN Posted Only Under Additional Notices Tab

The Allahabad High Court has provided relief to a petitioner, Anil Kumar Agarwal, by cancelling the orders which violated the principles of natural justice.

The petitioner claimed that he received a show cause notice dated 19.09.2023 demanding Rs 20,36,875.95. The notice was uploaded in the “additional notices and orders” instead of “notices and orders” on the GST Portal. Due to this, the petitioner failed to file a response to the notice. This resulted in passing an ex parte order without giving a chance of personal hearing to the petitioner. This clearly violated the principles of natural justice.

The High Court also observed that the order has been passed without giving a proper opportunity for a personal hearing to the petitioner. The High Court also noted the judgement passed in a similar earlier case of M/s Ashish Traders Vs. State of UP and another, which ruled in favour of the petitioner. Therefore, the Court set aside the orders and remanded the matter to the assessing authority. The High Court has directed the authority to pass a fresh notice to the petitioner within one week. The petitioner was also ordered to file its response within 15 days. After which, the assessing authority must pass the reasoned and speaking order within two months. This time, the petitioner must be given a chance of personal hearing.