GST: Assessment Order Passed With Wrong Entity’s Name But Valid GSTIN Still Invalid; HC Remands for Fresh Adjudication

Tvl. Gopal Vinod Granites, located in Krishnagiri, Tamil Nadu, filed an appeal in the Madras High Court under Article 226 of the Constitution of India, asking the high court to quash the GST assessment order dated 23.01.2024 and related other demand order issued by the Assistant Commissioner.

The company was issued a Show Cause Notice (SCN) dated 16.12.2023 by the GST Department. However, the department only uploaded the order on the GST portal, without sending a physical copy or informing the petitioner directly. Hence, the company was not aware of the notice and could not file any reply to the notice. Since the company did not respond, the department issued a final tax order on 23.01.2024 to the company confirming the demands in the show cause notice.

Later, when the petitioner came to know about this order, they checked the details and found a serious error: the order was passed in the name of some other company named M/s. Balaji Granites Industries. However, it wrongly used the GSTIN number that actually belongs to Tvl. Gopal Vinod Granites. On this, the company argued that the entire process violated the principles of natural justice, as no proper notice was served and no personal hearing was provided. Additionally, the order was issued in the name of some other company but legally applied to the petitioner based on GSTIN.

The tax department agreed to their mistake and said the notice was indeed intended for the petitioner, but due to clerical error, the final order wrongly mentioned the name of another company, i.e., M/s. Balaji Granites Industries. However, the GSTIN used in the order was correct and belonged to the petitioner. Agreed that the matter should be sent back for reconsideration.

When the court heard both sides, it concluded that there was a mistake in the impugned order; although the GSTIN matched the petitioner, the name mentioned was completely wrong. The order was passed without proper application of mind and against the wrong company (M/s. Balaji Granites Industries), which is legally not allowed under law. Therefore, the Court decided to quash the assessment order dated 23.01.2024.

The high court quashed the impugned assessment order dated 23.01.2024 and sent the matter back to the tax officer for fresh consideration. The company is allowed to file a proper reply with supporting documents within four weeks. After receiving the reply, the respondent officer must give the petitioner a clear notice of 14 days, offer a personal hearing, and then pass a fresh order as per law.

The Court disposed of the Writ Petition with no costs (neither party has to pay court fees to the other). Also, the connected miscellaneous petitions (interim applications) were closed.