GST Order passed without proper Hearing: Madras HC sets aside Orders, Mandates 10% Pre-deposit [Read Order]

The Madras High Court has set aside GST orders and related proceedings, contingent upon a 10% pre-deposit by the petitioner. The court also ordered the lifting of bank account attachments once the deposit is made. It was noted that the original order was passed without granting the petitioner a proper hearing.

The petitioner’s counsel, C.Rekha Kumari submitted that they were not served with the show-cause notice, and the impugned orders were issued without their knowledge.

Mrs. K. Vasanthamala, the Government Advocate, appearing for the GST department argued that notices had been served to the petitioner at the same address where subsequent orders were delivered.

Additionally, these notices were uploaded to the official portal, making claims of ignorance untenable. She further noted that the orders were appealable, and the period for filing an appeal and a delay condonation petition had lapsed.

After hearing submissions from both sides, the Court concluded that the impugned orders were issued without granting the petitioner an opportunity to be heard. The Court decided that the petitioner should be allowed to show cause in response to the notices for the assessment year 2017-2018.

The bench of Justice P B Balaji set aside the impugned orders, directing the petitioner to deposit 10% of the tax amount before the concerned authorities. Upon making this deposit, the petitioner is to be given a hearing to present their contentions regarding the orders.

The respondents are then required to pass new orders on the merits of the case and in accordance with the law within eight weeks. Furthermore, the Court ordered that the bank account attachment be lifted upon the deposit.

The writ petition was allowed without costs, and the connected Miscellaneous Petitions were closed, providing the petitioner a vital opportunity to contest the GST orders issued against them.

To Read the full text of the Order CLICK HERE

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