Failure of Accountant to inform of GST Demand Notice: Madras HC remands matter for Reconsideration

In a recent case concerning GST demand notice, the Madras High Court remanded the matter for reconsideration due to the failure of the petitioner's accountant to inform them about the proceedings. The court found that the original order lacked compliance with natural justice principles, as the petitioner was not notified about penalty and interest liabilities, which were later imposed in the impugned order. The petitioner, represented by Mr. B. Sivaraman, argued that the detailed notice exceeded the scope of the initial show cause notice, referencing discrepancies in the tax proposals and the absence of penalty discussions. The Additional Government Pleader, Mr. C. Harsha Raj, acknowledged procedural compliance but accepted the need for reconsideration due to the petitioner's lack of response despite notifications. Justice Senthil Kumar Ramamoorthy directed the respondent to treat the impugned order as a fresh show cause notice, granting the petitioner four weeks to respond and remit 10% of the disputed tax. The case highlights issues of procedural fairness in GST assessments.