The Madurai bench of Madras High Court has ruled that a maximum of three personal hearings must be granted to the assessee in compliance with provisions under the Goods and Services Tax ( GST ) Act pursuant to Form GST DRC-01 notice. The court set aside an impugned order for failing to provide the petitioner with the mandated third hearing.
The petitioner submitted that after receiving the DRC-01 notice dated May 21, 2024, they submitted replies via the portal and participated in hearings on July 2, 2024, and July 12, 2024. On July 12, they requested additional time to submit further documents and sought rescheduling of the hearing.
Complete Draft Replies of GST ITC Related Notices, Click Here
However, without granting the third hearing, the respondent passed the final order. The petitioner contended that this action was contrary to the mandatory requirement of granting three personal hearings.
The respondent’s counsel argued that the provision for three hearings was directory, not mandatory, and the petitioner had failed to produce documents despite prior opportunities.
The court observed that the petitioner had filed a manual reply on July 10, 2024, requesting further time for personal representation and document submission. The first respondent-STO (inspection)’s decision to pass the final order without allowing the third hearing violated the prescribed procedure.
Complete Draft Replies of GST ITC Related Notices, Click Here
Through this decision, the court clarified that maximum 3 personal hearings should be granted to the assessee. It rejected the respondent’s counsel’s submission that the provision for 3 hearings was directory and not mandatory.
While setting aside the contested order, Justice Kumaresh Babu directed the respondent to provide a personal hearing to the petitioner. It was instructed that the petitioner to appear before the authority on December 24, 2024, for the hearing. The respondent was ordered to pass a fresh order based on the merits of the case and the documents submitted by the petitioner. Accordingly, the petition was disposed of.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
