Uploading Assessemnt Orders After GST Registration Cancellation, Petitioner Failed To Check Website, Kerala High Court Grants Opportunity To Challenge On Deposit

The Kerala High Court has quashed the assessment orders and remanded the matter back on condition of remitting Rs. 10 lakhs towards the GST liabilities.

The bench of Justice Gopinath P. has observed that the registration of the petitioner had been cancelled in the month of December 2021, and the petitioner had also stopped business. The assessment orders were issued only in the month of September 2022, and therefore, the petitioner was not aware of the orders as it was not checking its portal on a regular basis.

The petitioner/assessee has challenged the orders of assessment and summary of orders for the years July 2017 and August 2017 under the CGST/SGST Acts. The registration of the petitioner had been cancelled on 12.12.2021 with effect from 30.11.2019, and the petitioner was therefore unaware of the orders passed and did not get an opportunity to file returns.

The orders were uploaded on the portal, which had not been accessed by the petitioner since the registration had been cancelled and the petitioner was no longer continuing with the business.

The petitioner contended that the orders were issued on 13.09.2022, much after the registration of the petitioner was cancelled. The petitioner had conceded an output tax liability of approximately Rs. 10 lakhs in the GSTR-1 filed for July and August of 2017. Since the assessment has now been completed to the best of judgment, the petitioner may be given an opportunity to appear before the officer and establish its case.

The department contended that if the petitioner was in any manner aggrieved by the orders issued in this case, it was for the petitioner to have availed statutory remedies under Section 107 of the CGST and SGST Acts. The petitioner not accessing his portal cannot be accepted, as it is settled law that the uploading of the orders on the portal is deemed to be sufficient for the purposes of the CGST and SGST Acts.

The court held that the writ petition will stand ordered directing that if the petitioner remits a sum of Rs. 10 lakhs towards the GST liabilities for the months of July and August of 2017, within a period of two weeks. The orders will be set aside, and the matter will stand remanded to the files of the department, who shall pass fresh orders after affording an opportunity of hearing to the petitioner. If the petitioner does not remit the amount of Rs. 10 lakhs within a period of two weeks, the petitioner will lose the benefit of the judgment.

Counsel For Petitioner: Padmanathan K.V., R.Sreejith

Counsel For Respondent: Thushara James

Case Title: Global Distributors Versus The Assistant Commissioner

Citation: 2024 LiveLaw (Ker) 522

Case No.: WP(C) NO. 24950 OF 2024

Click Here To Read The Order