Assessee’s Responsibility to Monitor GST Portal: Madras HC


Assessee’s Responsibility to Monitor GST Portal: Madras HC


The Madras High Court recently rendered a significant judgment in the case of Bajrang & Bajrang Vs State Tax Officer (FAC). The case revolves around the responsibility of registered individuals to monitor the GST portal and respond to tax demands promptly.

The Bench of Justice Senthilkumar Ramamoorthy observed, “On perusal of the impugned order, it is evident that an audit was conducted and that an audit report dated 15.09.2023 was issued. It is also clear that an intimation and show cause notice preceded the impugned order. In these circumstances, the petitioner cannot be absolved of responsibility as a registered person to monitor the GST portal. At the same time, it is noticeable that the tax proposal was confirmed because the petitioner did not submit a reply along with supporting documents. Therefore, albeit by putting the petitioner on terms, the interest of justice demands that the petitioner be provided an opportunity.”

The Petitioner submitted that he can respond to each defects dealt in the impugned order if provided an opportunity and he was willing to remit 10% of the disputed tax demand as a condition.

Therefore, the impugned order dated 29.12.2023 is set aside and the matter is remanded for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a maximum period of three weeks from the date of receipt of a copy of this order. Within the aforesaid period, the petitioner is also permitted to submit a reply to the show cause notice. Upon receipt of the petitioner’s reply and upon being satisfied that 10% of the disputed tax demand was received, the respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within a period of two months from the date of receipt of the petitioner’s reply.

The copy of the order is as under:


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Krishnakant Jakhotia
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