The Madras High Court, in quashing the contested Goods and Services Tax (GST) Order, has directed the authorities to conduct a personal hearing and document submission, which were previously denied despite being requested.
The petitioner, a registered person under GST laws, received a show cause notice dated 23.08.2023, to which they replied on 06.12.2023. Subsequently, an impugned order was issued on 29.01.2024.
The petitioner’s counsel argued that the reply addressed all defects outlined in the notice and expressly requested a personal hearing, which was not granted. Additionally, it was noted that a personal hearing had been conducted on 22.03.2024 for the same assessment period, during which several documents were submitted by the petitioner.
Mr. V. Prashanth Kiran, Government Advocate, countered that about six months’ time was available to the petitioner to produce all relevant documents in respect of the four defects referred to both in the intimation and show cause notice.
In addition, the petitioner was offered a personal hearing on 14.09.2023. Therefore, counsel submitted that the principles of natural justice were adhered to.
The bench observed that although the petitioner’s reply addressed all defects, the failure to annex supporting documents resulted in the rejection of their defence. However, the absence of a granted personal hearing despite an explicit request constitutes a breach of statutory provisions, warranting interference with the impugned order.
Consequently, a Single bench of Justice Senthilkumar Ramamoorthy quashed the impugned order and remanded the matter for reconsideration. The petitioner was granted 15 days to submit relevant documents supporting their reply to the show cause notice. Upon receipt, the respondent was directed to provide a personal hearing and issue a fresh order within two months.
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