The Madras High Court has ruled that the Goods and Services Tax ( GST ) officers must consider the replies filed by assessees, even if submitted after multiple hearings, while adjudicating tax disputes.
This ruling came in reply to a challenge against an order which disregarded the petitioner’s reply in a case concerning discrepancies between GSTR-3B and GSTR-2A returns.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
The petitioner, Tvl. Aarna Traders, had received a show-cause notice on January 20, 2024, regarding mismatched returns and was subsequently issued reminders on March 11, 2024, to respond by March 15, 2024.
The petitioner submitted a reply on the stipulated date, addressing the mismatch amount and citing relevant case laws. However, the adjudicating officer ignored this reply, stating that it was filed after four personal hearing opportunities.
The petitioner argued that the order violated principles of natural justice, as their reply was a valid response to the notice. The respondent contended that the reply merely referenced case laws without addressing the factual issues.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
Justice Senthilkumar Ramamoorthy observed that the petitioner’s reply, filed on March 15, 2024, was on record and clarified the disputed mismatch amounts. Ignoring the reply solely because it was submitted after multiple hearings was deemed unjustified. Consequently, the Court set aside the order and remanded the matter for reconsideration.
The petitioner was granted 15 days to file a fresh reply, and the GST department was directed to provide a reasonable opportunity, including a personal hearing, before issuing a revised order within three months. The writ petition was disposed of accordingly.
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