GST order Passed Just One Day Before Personal Hearing Date: Madras calls out Clear Violation of Natural Justice [Read Order]

The Madras High Court set aside a GST ( Goods and Services Tax ) order that was passed a day before the scheduled personal hearing.

Justice Krishnan Ramasamy, presiding over the matter on July 21, 2025, ruled that the premature issuance of the assessment order amounted to a blatant violation of the principles of natural justice, warranting a complete remand of the matter for reconsideration.

The petitioner, Tvl.Shri Bharathi Weaves, was issued a show cause notice on November 23, 2024, alleging suppression of correct tax liability in its annual returns for the financial year 2020-21. In response, the petitioner sought a 15-day extension to compile and submit the necessary supporting documents.

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The department recognized the request and scheduled a personal hearing for February 11, 2025. However, the Officer passed the assessment order on February 10, 2025, a full day before the date fixed for the hearing.

This procedural lapse was not only submitted by the petitioner’s counsel but also admitted by the government pleader representing the respondent.

The Court noted that the premature issuance of the order nullified the opportunity for the taxpayer to present its defense and documents, which is fundamental to fair adjudication. Therefore, it set aside the impugned order and directed the department to re-adjudicate the matter.

The petitioner has been allowed to file a fresh reply with documents within three weeks. Further, the Court ordered the respondent to issue a clear 14-day notice for personal hearing, after which a speaking order is to be passed strictly in accordance with law and based on the petitioner’s submissions.

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