The Madras High Court directed for reconsideration of a matter where the ₹1.9 Cr GST ( Goods and Services Tax ) demand passed two days before the hearing date despite adjournment granted.
Mr.G.Natarajan, the petitioner’s counsel argued that, following the issuance of a show cause notice on September 27, 2023, which alleged excess ITC claims and non-reversal of ITC on credit notes, a personal hearing was scheduled for December 15, 2023. Due to the illness of the petitioner’s Finance Manager, an adjournment was requested and granted, with the new date set for December 28, 2023.
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However, on December 28, the petitioner learned that the GST order had been passed on December 26 without further notice or opportunity for a hearing. The order confirmed a substantial tax demand of Rs. 1,95,89,806 each under CGST and SGST, and Rs. 3,38,982 under IGST, along with interest and penalties.
The petitioner contended that this constituted a breach of natural justice and requested an additional opportunity to present their case.
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The Additional Government Pleader for the respondents agreed that, subject to verification of the 10% tax payment made by the petitioner, the matter should be remitted to the First Respondent for reconsideration.
Justice Krishnan Ramasamy, upon review, found that the order was issued without affording the petitioner a proper opportunity to be heard, thus violating natural justice principles. The High Court set aside the impugned order and remitted the case back to the First Respondent for a fresh consideration.
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