Bombay HC cancels GST order Issued before Hearing, Matter remanded for Fresh Decision. [Read Order]
High Court quashes GST order passed before scheduled hearing, citing breach of natural justice.
![Bombay HC cancels GST order Issued before Hearing, Matter remanded for Fresh Decision. [Read Order]](https://images.taxscan.in/h-upload/2026/04/03/2131650-bombay-hc-cancels-gst-order-issued-before-hearingjpg.webp "Bombay HC cancels GST order Issued before Hearing, Matter remanded for Fresh Decision. [Read Order]")
In a recent ruling, the Bombay High Court has set aside an ex parte order passed under the GST ( Goodsand Services Tax) Act after finding that a fair hearing was denied despite being summoned for a later date. The Court held that the impugned order dated 30.03.2022 was passed prematurely, violating principles of natural justice. The petitioners, Rajkala Enterprises Pvt. Ltd....
In a recent ruling, the Bombay High Court has set aside an ex parte order passed under the GST ( Goodsand Services Tax) Act after finding that a fair hearing was denied despite being summoned for a later date. The Court held that the impugned order dated 30.03.2022 was passed prematurely, violating principles of natural justice.
The petitioners, Rajkala Enterprises Pvt. Ltd. and another, approached the High Court under Article 226 of the Constitution, challenging the legality of the ex parte orders and subsequent attachment notices issued under the CGST and MGST Acts. They also sought a declaration that Section 16(4) of the GST Act is arbitrary and violative of constitutional guarantees under Articles 14 and 300A.
Senior Counsel Bharat Raichandani, appearing for the petitioners, argued that a show cause notice dated 11.03.2022 had summoned the petitioners to appear on 22.04.2022 and file their representation. Also, the impugned order was passed on 30.03.2022, three weeks before the scheduled hearing, without granting any opportunity to respond.
The division bench of Justices G.S. Kulkarni and Aarti Sathe found merit in the petitioner’s contention. While referring to the concluding paragraphs of the notice, the Court noted that the petitioners were clearly directed to appear on 22.04.2022 and submit their reply in FORM GST DRC-06.
The Court observed, “The impugned order, however, was passed on 30 March 2022 in regard to which, admittedly, no hearing was granted to the petitioner as also no opportunity to file reply to the said notice, was not granted to the petitioner.”
The high court quashed the impugned order and remanded the matter to the State Tax Officer for fresh proceedings in accordance with law, including a proper hearing. The entire exercise was directed to be completed within three months. The Court also clarified that any recovery action based on the quashed order shall not be given effect.
Accordingly, the petition was disposed of.
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