Madras HC set aside ex parte GST order; remanded on condition of tax deposit and appropriation within 30 days.
GST Order Set Aside for Denial of Hearing: Madras HC
The Madras High Court set aside a GST order passed without granting personal hearing after the taxpayer had submitted replies to the show-cause notice. The Court held that failure to grant a personal hearing after written submissions renders the order a violation of natural justice.
The Court exercised equitable jurisdiction and remanded the matter for fresh adjudication, conditional upon the appellant depositing 25% of the tax demand and providing documentary proof of appropriation of ITC. The taxpayer was directed to file the requisite declarations within 30 days.
Granting an opportunity of hearing is not a mere formality but a core procedural right. Even after reply submission, a personal hearing must be offered unless expressly waived.
This ruling strengthens procedural safeguards in GST adjudications. Practitioners must ensure timely requests for hearings and can invoke this judgment when challenging ex parte orders despite submission of detailed replies.
