Auditor’s Failure to Notice SCN and Order on GST Portal: Madras HC grants another Opportunity to Contest Tax Demand on Merits\r\n\r\n

In a significant ruling, the Madras High Court overturned an order after the petitioner claimed ignorance of the proceedings, blaming their auditor for missing a Show Cause Notice (SCN) and an order on the GST portal. This oversight led to a challenge against a tax demand issued for alleged GST non-compliance. Represented by R. Hemalatha, the petitioner requested a chance to contest the tax demand on its merits, proposing to pay 10% of the disputed amount as a condition for reconsideration. \r

C. Harsha Rai, for the respondent, argued that all procedural requirements, including notices, were met. Justice Senthilkumar Ramamoorthy, acknowledging the petitioner's unawareness, granted them another opportunity, subject to conditions. The court's decision requires the petitioner to pay 10% of the disputed tax within 15 days and respond to the SCN, with the respondent obligated to offer a fair hearing and issue a new order within three months. This ruling underscores the importance of procedural fairness and the right to be heard in tax disputes.