Natural justice in GST detention matters requires a hearing on the revised notice before final orders are passed.

Detention and consequential GST orders were vitiated because the hearing held on the earlier notice under the Integrated Goods and Services Tax Act did not cover the revised Form GST MOV-07 notice issued the same day under the Central and State GST Acts. As no opportunity was given to answer the revised notice, the petitioner was not heard on the basis of the final orders, amounting to breach of natural justice. The Madras HC set aside the impugned orders and permitted the petitioner to appear, file a reply, and have the matter decided afresh.

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Issues: Whether the impugned detention and consequential orders under the GST enactments were liable to be set aside for want of opportunity of hearing.

Analysis: The proceedings showed that the hearing recorded on 24.03.2023 related to the earlier notice proposing action under the Integrated Goods and Services Tax Act, 2017. A revised notice in Form GST MOV-07, invoking the applicable provisions of the Central Goods and Services Tax Act, 2017 and the State Goods and Services Tax Act, 2017, was issued on the same day, but no opportunity was granted to the petitioner to answer that revised notice. The petitioner was therefore not heard on the basis on which the impugned orders were ultimately passed.

Conclusion: The orders were vitiated for breach of natural justice and were set aside; the petitioner was permitted to appear, file a reply, and have the matter decided afresh.

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