GST Returns not filed and Taxes not Paid during COVID period: Madras HC sets aside Demand Order on Rs. 2L pre-deposit condition

In a recent ruling, the Madras High Court overturned a demand order on a Rs. 2 lakh pre-deposit condition concerning GST issues during the COVID-19 period. Nagoorar Enterprises, the petitioner, cited reasons like family bereavements, nonpayment by suppliers, and pandemic challenges for delayed GST filings and tax payments. \r

They eventually filed returns and paid taxes, disputing the imposition of interest without a prior personal hearing. The court noted the mandatory nature of personal hearings under GST laws and considered the petitioner's payment details and the impact of COVID-19 related circulars on interest rates. \r

Setting aside the interest orders, the court directed the petitioner to remit an additional Rs. 2 lakhs within three weeks. Upon receipt of Rs. 4 lakhs in total, the respondents must provide a fresh opportunity for the petitioner to present their case, including a personal hearing, and issue new orders within three months.