GST liability confirmed on Non-Payment /Short Payment of Tax on Outward supplies: Madras HC grants Reasonable Opportunity on 10% Pre-deposit

In a recent case before the Madras High Court, the court addressed a Goods and Service Tax (GST) liability issue arising from non-payment or short payment of tax on outward supplies. The petitioner challenged an order dated October 30, 2023, citing a breach of natural justice principles due to inadequate communication of notices. The court acknowledged that although notices were uploaded on the GSTN portal, they were not effectively communicated to the petitioner. \r

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Representing the petitioner, Mr. A. Satheesh Murugan argued that awareness of the assessment order only came when the petitioner's bank account was attached in March 2024. Upon instructions, the petitioner agreed to deposit 10% of the disputed tax demand as a precondition for reconsideration. \r

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After reviewing the case, Justice Senthil Kumar Ramamoorthi set aside the impugned order, provided the petitioner pays the 10% deposit within two weeks, and allows them to respond to the show cause notice. The court directed a fresh decision within three months, ensuring a fair opportunity for the petitioner.