In a significant ruling, the Madras High Court has held that the filing of a reply to the show-cause notice in form GST-DRC-06 is not mandatory under Section 73(9), 74(9) and 76(3) of GST Act and the reply so filed through post shall also be treated as valid.
The petitioner, Asia (Chennai) Engineering Company Private Limited, sent physical representation on 08.01.2022 received by them on 10.01.2022. The petitioner denied the opportunity of hearing to the petitioner.
Noting that the department ought to have referred to it and considered the same and thereafter given the petitioner an opportunity to give his explanation, Justice M. Nirmal Kumar observed that “In view of non-consideration, the petitioner denied his right of opportunity, and principles of natural justice.”
The Court further held that the only objection of the Department is that the postal/physical reply not considered since it was not sent through the portal.
“The petitioner deserves a personal hearing so that his objections can be heard. This case is for an erroneous refund. In such circumstances, it would be appropriate that a personal hearing is given and the documents considered, thereafter the Department to proceed further. In view of the same, the Department is to give an opportunity of a personal hearing to the petitioner, hear the objections, and peruse the documents submitted and the explanations. The Department submits that now the file of the petitioner transferred to the second respondent,’ the Court said.
Allowing the petition, the Court held that “Therefore, this Court not going into the merits contested by both the petitioner and the respondents, finds the petitioner had sent a detailed representation dated 07.01.2022 which received by the respondents on 10.01.2022 which is not disputed. The only objection of the Department is that the postal/physical reply was not considered since it was not sent through the portal. The petitioner deserves a personal hearing so that his objections can be heard. This case is for erroneous refund. In such circumstances, it would be appropriate that personal hearing is given and the documents considered, thereafter the Department to proceed further. In view of the same, the Department to give opportunity of personal hearing to the petitioner, hear the objections, peruse the documents submitted and the explanations. The Department submits that now the file of the petitioner transferred to the second respondent.”
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