GST S.73 Demand Order issued Without Proper Hearing Quashed: Madras HC Directs Hearing and Lifting of Bank Attachment on 25% Deposit [Read Order]

In a recent ruling, the Madras High Court quashed a demand order issued under Section 73 of the Tamil Nadu Goods and Services Tax ( TNGST ) Act, 2017, on the grounds that it was passed without affording the petitioner a proper opportunity for hearing.

The Court noted that although a notice had been issued by the department, it was merely uploaded under the “additional notices” tab on the GST portal, which the petitioner failed to notice. The Court considered this lapse condonable.

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Appearing on behalf of the petitioner, counsel Mr. C. Mohan submitted that the petitioner was willing to remit 25% of the disputed tax demand on or before June 12, 2025. Taking note of this undertaking, the Court quashed the impugned order and remitted the matter to the adjudicating authority for reconsideration.

The Court directed the petitioner to appear before the authority on June 16, 2025, at 4:00 PM, and place all relevant documents for a fresh hearing. The respondent authority was instructed to pass a new order based on the merits of the case and in accordance with law, after giving due opportunity to the petitioner.

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The petitioner’s bank account had been provisionally attached due to the earlier order. The High Court directed that upon payment of 25% of the demand by June 12, 2025, the said bank attachment must be lifted forthwith by the third respondent.

However, the Court made it clear that if the petitioner fails to comply with the undertaking, the benefit of this order would automatically stand recalled. The writ petition was accordingly allowed, with no order as to costs, and all connected miscellaneous petitions were closed.

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To Read the full text of the Order CLICK HERE

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