Decided 11 September 2023. The Madras High Court has set aside a section 73 assessment order because the DRC-01A intimation and DRC-01 show cause notice were placed under 'View Additional Notices and Orders' on the portal, while all earlier communications since 2017 had come under 'View Notices and Orders'. The Court refused to send the taxpayer to appeal and directed the department to address the issue of using two separate menus.
Case at a glance
| Case | M/s East Coast Constructions and Industries Ltd. v. Assistant Commissioner (ST), Nungambakkam |
| Forum | Madras High Court (Justice C. Saravanan) |
| Case No. | W.P. No. 26457 of 2023 |
| Date of order | 11 September 2023 |
| Impugned order | Section 73 order and DRC-07 dated 08.05.2023 |
| Result | Order set aside; fresh order within three months |
Facts of the case
The order followed ASMT-10 dated 21.03.2022, DRC-01A dated 19.08.2022 and DRC-01 dated 27.10.2022, the last two of which went unanswered.
The petitioner said that since 01.07.2017 all notices had been placed under 'View Notices and Orders', but these two were placed under 'View Additional Notices and Orders'. The department said communication under section 169 was proper, notices were also posted, and the petitioner could appeal.
Issue before the High Court
Should the taxpayer get a fresh chance where notices were placed under a different portal menu from the one used since inception?
What the High Court held
- The dispute concerned a mismatch between GSTR-1 and GSTR-3B, apparently linked to tax deducted at source reported in GSTR-7, which needed explanation. The petitioner deserved a fair chance.
- The Court declined to relegate the petitioner to appeal, as the matter needed proper consideration at the first stage.
- The order was set aside and remitted for a fresh decision on merits within three months.
- The department was directed to address the issue of hosting notices under 'View Additional Notices and Orders' when 'View Notices and Orders' had been used since inception.
Practical takeaways for taxpayers
- Monitor both notice menus on the portal; officers may use either.
- Where a mismatch involves GSTR-7 TDS credits, keep a reconciliation ready to explain it.
- A writ for remand may be entertained even though an appeal lies, where the taxpayer never had a real opportunity at the first stage.
Frequently asked questions
Why did the Court not send the taxpayer to appeal?
Because the matter needed proper consideration on merits at the original stage, which the petitioner had missed due to the portal issue.
What direction was given about the portal?
The department was asked to address the use of a separate 'View Additional Notices and Orders' menu.
Facing a similar GST dispute?
GST Folio prepares replies to show cause notices, appeals before the Appellate Authority and GSTAT, refund claims and ITC reconciliations for businesses across India. Call or WhatsApp +91 80513 31315 or email gstfolio@zohomail.in.
This summary is based on the order of the Madras High Court in W.P. No. 26457 of 2023. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.