Raising New Issues in GST Final Order Without Opportunity to Clear Violation of Natural Justice Principles: Madras HC sets aside order [Read Order]
The Court held that raising new grounds of assessment in the final GST order without prior notice violated the fundamental principle of audi alteram partem, no one should be condemned unheard.
![Raising New Issues in GST Final Order Without Opportunity to Clear Violation of Natural Justice Principles: Madras HC sets aside order [Read Order]](https://images.taxscan.in/h-upload/2025/07/29/2070269-gst-final-order.webp "Raising New Issues in GST Final Order Without Opportunity to Clear Violation of Natural Justice Principles: Madras HC sets aside order [Read Order]")
The Madras High Court has set aside a GST ( Goods and Services Tax ) assessment order passed on the ground that the final order included five additional issues that were not part of the original show cause notice and without providing the petitioner an opportunity to respond. The show cause notice in Form GST DRC-01, issued on 29.11.2024, had originally raised 19 issues, to which...
The Madras High Court has set aside a GST ( Goods and Services Tax ) assessment order passed on the ground that the final order included five additional issues that were not part of the original show cause notice and without providing the petitioner an opportunity to respond.
The show cause notice in Form GST DRC-01, issued on 29.11.2024, had originally raised 19 issues, to which the petitioner submitted a detailed reply on 29.12.2024. However, when the final order was passed, five new grounds were introduced for the first time, without giving the petitioner a chance to file objections or participate in a personal hearing.
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The petitioner, Tvl Jai Nidhi Automation argued that this amounted to a clear case of non-application of mind and a breach of natural justice, as the order traveled beyond the scope of the show cause notice.
The Government Advocate, Ms. K. Vasanthamala representing the tax department admitted that the additional issues were not previously communicated to the petitioner and requested the Court to pass appropriate orders.
The Court, after reviewing the submissions and record, observed that the respondent had indeed violated the fundamental principle that no one should be condemned unheard (audi alteram partem), especially when new grounds of assessment were raised in the final order without prior intimation.
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Justice Krishnan Ramasamy held that such procedural irregularity required judicial interference, particularly when the petitioner was denied a fair opportunity to defend itself. The Court, therefore, quashed the impugned order dated 16.01.2025 and remanded the matter back to the assessing authority for fresh consideration.
It directed that the petitioner treat the original assessment order as a show cause notice and file a fresh reply along with supporting documents within four weeks. After receiving the reply, the assessing officer must issue a 14-day clear notice for a personal hearing and thereafter pass a reasoned order in accordance with law.
Ms. Meera Ramesh appeared for the petitioner.
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