Court quashes GST orders for lack of hearing, cites Principles of Natural Justice The Madras High Court held that orders passed under the Central Goods and Services Tax Act, 2017 and the Tamil Nadu Goods and Services Tax Act, 2017 ...
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Court quashes GST orders for lack of hearing, cites Principles of Natural Justice
The Madras High Court held that orders passed under the Central Goods and Services Tax Act, 2017 and the Tamil Nadu Goods and Services Tax Act, 2017 without affording the petitioners a personal hearing violated the Principles of Natural Justice. The court quashed the impugned orders and directed the respondents to reconsider the matter after granting a personal hearing as required by Section 75(4) of the Tamil Nadu GST Act within forty-five days. The court concluded that the orders were invalid, closed the related Writ Miscellaneous Petitions, and did not impose costs on the parties.
Issues: Violation of Principles of Natural Justice in passing orders under the Central Goods and Services Tax Act, 2017 and Tamil Nadu Goods and Services Tax Act, 2017 without affording an opportunity of personal hearing.
In a recent judgment by the Madras High Court, the issue revolved around the validity of orders passed under the Central Goods and Services Tax Act, 2017 and the Tamil Nadu Goods and Services Tax Act, 2017 without granting the petitioners an opportunity of personal hearing. The court highlighted the significance of Principles of Natural Justice, emphasizing that even if the statutory provisions are silent on personal hearing, it is a fundamental requirement. The court referred to Section 75(4) of the Tamil Nadu Goods and Services Tax Act, 2017, which mandates granting a hearing upon a written request or when an adverse decision is contemplated against the individual. Consequently, the court held that the impugned orders, issued without providing a personal hearing, were liable to be quashed.
The judgment directed the respondents to remit the case back to them for passing appropriate orders after affording the petitioners a personal hearing as per Section 75(4) of the Tamil Nadu Goods and Services Tax Act, 2017. The court set a timeline of forty-five days for the respondents to conduct this exercise from the date of receipt of the court's order. Ultimately, the court disposed of the writ petitions with the observation that the impugned orders were invalid due to the absence of a personal hearing, and no costs were imposed on the parties. As a result, the connected Writ Miscellaneous Petitions were closed, bringing the matter to a conclusion.
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