Denial of Personal Hearing due to Printing Error in GST SCN Reply Form: Madras HC sets aside Order [Read Order]

In a recent ruling, the Madras High Court set aside the order dated April 29, 2024, citing a violation of natural justice, as the petitioner was denied a personal hearing due to a printing error in the GST Show Cause Notice ( SCN) reply form, contrary to the mandate under Section 75(4) of the Goods and Service Tax Act.

A writ petition was filed under Article 226 of the Constitution of India, seeking the issuance of a Writ of Certiorari to quash the order dated April 29, 2024, issued by the first respondent under GSTIN: 33AAWFM9907E1ZV/2018-19.

The petition challenged the aforementioned order, claiming that the petitioner, Matcon Impex, was not granted a personal hearing despite opting for it on the online portal. The petitioner's counsel, Mr. Adithya Reddy, argued that after the issuance of a show cause notice on December 26, 2023, the petitioner filed a detailed reply along with relevant documents on March 4, 2024. However, the first respondent passed the impugned order without providing a personal hearing, which the petitioner had requested. Counsel further contended that although the petitioner selected 'Yes' for the option of a personal hearing in the online portal, the printed form indicated 'No,' suggesting a technical glitch that deprived the petitioner of the right to a hearing. This, the counsel argued, violated principles of natural justice.

On the other hand, the Government Advocate, Mr. V. Prashanth Kiran, representing the respondent, referred to the printed form submitted by the petitioner, which showed 'No' selected for the personal hearing option. He acknowledged the possibility of a technical glitch and requested the court to pass appropriate orders, including remitting the matter back to the respondent for reconsideration.

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The bench observed that the petitioner had indeed requested a personal hearing in their reply dated March 4, 2024. The court noted that Section 75(4) of the GST Act mandates that an opportunity of hearing must be granted, particularly when an adverse order is to be passed. Since the petitioner was denied this opportunity, the bench concluded that the order dated April 29, 2024, was passed in violation of the principles of natural justice.

Justice Krishnan Ramaswamy, presiding over the single bench, set aside the impugned order and remanded the matter to the respondent for fresh consideration. The petitioner has been directed to file their reply or objection, along with any required documents, within two weeks. Upon receipt, the respondent is to provide a 14-day notice for a personal hearing before passing any orders on merits, as per the law.

The writ petition was disposed of with the aforementioned directions, and no costs were imposed.

To Read the full text of the Order CLICK HERE

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