The Kerala High Court upheld GST recovery proceedings against Satwa Solutions, ruling that a taxpayer cannot remain silent after a demand notice and later challenge the recovery without valid explanation.
Taxpayer’s Silence Bars Challenge to GST Recovery: Kerala HC
The Kerala High Court has upheld the recovery of GST dues from Satwa Solutions, holding that the taxpayer’s failure to respond to the Show Cause Notice (SCN) at the appropriate stage estops it from later challenging the recovery proceedings. The Court reiterated the principle that litigation cannot be used as a tool for delay, especially when the taxpayer chose not to participate in the adjudication process.
The petitioner had argued procedural irregularities and denial of personal hearing. However, the Court found that the SCN had been duly served and no application for hearing was filed during the stipulated period.
"A person who remains silent when a notice is issued and makes no representation cannot later complain of being unheard,"the Court observed, citing settled precedents under the CGST Act.
This ruling emphasizes the importance of timely engagement in GST proceedings. Practitioners must advise clients to respond promptly to SCNs and request hearings if needed. The decision strengthens the revenue department’s position in fast-tracking recovery actions against non-responsive taxpayers, reducing the scope for dilatory tactics in GST litigation.
Citations
- Section 73/75, CGST Act, 2017
