Failure to Respond to SCN due to Lack of Information of Proceedings: Madras HC sets aside GST Demand Order

The Madras High Court set aside a GST demand order against Tvl. Ispeel Solution Private Limited due to their failure to respond to a show cause notice (SCN) caused by a lack of information about the proceedings. The court acknowledged that the petitioner's auditor failed to inform them about the SCN, and the petitioner had limited computer skills to access necessary information. The petitioner’s counsel, R. Hemalatha, argued that the tax demand stemmed from discrepancies between the petitioner’s GSTR 3B returns and GSTR 1 and 2A statements. The respondent, K. Vasanthamala, stated that several reminders and notices were sent, but the petitioner did not respond. Justice Senthilkumar Ramamoorthy ruled that the petitioner should be given a chance to contest the tax demand on merits. The court remanded the order, requiring the petitioner to pay 10% of the disputed tax within two weeks and respond to the SCN, with the respondent to issue a fresh order within three months.