Madras HC sets aside Assessment Orders u/s 63 of GST Act due to Lack of Opportunity for Contesting Tax Proposal

The Madras High Court has nullified assessment orders issued under Section 63 of the GST Act, 2017, remanding the matters for reconsideration. Annalakshmi Stores challenged tax assessments from 2017-18 to 2020-21, following cancellation of its GST registration retroactively due to non-filing of returns. \r

The petitioner argued that the show cause notice in Form GST ASMT-14 was mandatory under Section 63 and Rule 100 of TNGST Rules, contending improper service via a temporary ID upload. The court acknowledged the petitioner's inability to file appeals due to the temporary ID issue and noted tax computation based on GSTR-2A without a personal hearing. \r

Orders were set aside, contingent on the petitioner remitting 10% of the disputed tax for each period within two weeks, allowing refund applications under the old registration, and mandating a personal hearing before fresh orders are issued within three months.