GST Demand Based on Facebook Posts Upheld: HC Finds No Violation of Natural Justice

The petitioner, proprietor of M/s Sri Vasavi Wedding & Event Planners, challenged a GST assessment order passed for the period 26.09.2017 to 31.03.2021. She argued that due to her husband’s severe medical issues and COVID-19 restrictions, she could not conduct major events after 2018 and only small engagements were handled up to early 2020. A GST visit was conducted on 05.11.2021 under Section 71, during which she later submitted a statement explaining her limited operations and disclosing the turnover declared in GSTR-3B returns. A show-cause notice followed, based largely on photos and posts available on her Facebook page, which the officers treated as evidence of unreported event-management turnover.

Main Issue: Whether the GST assessment order dated 03.03.2022 was vitiated for violation of natural justice, and whether reliance on Facebook material could invalidate the assessment.

HC Decided: The Hon’ble Court held that the petitioner was given due opportunity to file objections and attend a personal hearing. Since she had sought additional time and thereafter failed to respond, the Court concluded that there was no breach of natural justice. The Bench noted that the assessing authority had relied on Facebook posts from the petitioner’s own business page showing numerous events conducted in various cities, along with corresponding turnover estimates. Prima facie, it cannot be said that no events were held during the relevant period.

The Court declined to adjudicate them under Article 226. The writ petition was dismissed with liberty to the petitioner to approach the appellate authority.

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