[GST] 'Ill-Advice From Unqualified Consultants Leading To Clients' Inability To Appear Before Authorities': Madras High Court

Justice Krishnan Ramasamy stated that, "This Court comes across similar instances in several cases, extending ill advice to the clients by the consultants, who are all not qualified persons. Such kind of ill-advice leads to the fact that the clients are not in a position to appear before the Officers concerned with suitable reply supported by documents, which is purely on the negligence on the part of the consultant."

It is the case of the assessee/petitioner that a show cause notice was issued to the assessee. Due to the ill-advice of the consultant, the assessee filed an irrelevant reply.

Hence, the impugned order was passed by the Assistant Commissioner. Moreover, the assessee's account was frozen by the bank, which resulted in a standstill of the assessee's company.

The bench opined that the ill-advice given by the unqualified consultant would generally be on account of the work burden, as they are used to advising many clients.

The bench directed the department to come up with a proper circular to assessees in respect of the engagement of a qualified consultant.

The bench stated that, "This type of wrong advice given by an unqualified person cannot be accepted. The respondent department is directed to issue note/circular to the assessees to engage consultants and get advice from qualified consultants. Otherwise, the assessees file petitions directly through employees or relatives."

In view of the above, the bench granted one more opportunity to the assessee and set aside the impugned order.

Case Title: Chandrasekaran Proprietor Subha Earth Movers v. Assistant Commissioner

Citation: 2025 LiveLaw (Mad) 283

Case Number: W.P.No.30638 of 2025

Counsel for Petitioner/Assessee: R. Ananthi

Counsel for Respondent/Department: P. Selvi