Procedural Flaws Invalidate Tax Order: CGST Section 75(4) Violation Leads to Quashing of Notice Due to Natural Justice Breach

HC Madras quashed an order issued under CGST Rules due to violation of natural justice principles. The court found the Show Cause Notice deficient as it did not specify a hearing date, violating Section 75(4) of CGST Act. The case was remitted back to respondents with directions to issue a fresh notice, allowing petitioner 30 days to file a reply, and pass appropriate orders within six weeks.

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Issues involved: Violation of principles of natural justice in passing the impugned order.

Summary:
The High Court of Madras, in the case, observed that the impugned order was passed in gross violation of principles of natural justice. The order was preceded by a Show Cause Notice under Rule 142(1) of the CGST Rules, 2017, which did not specify a date for the petitioner to appear for a personal hearing, leading to non-participation by the petitioner. The Court referred to Section 75(4) of the CGST Act, 2017, which mandates granting an opportunity of hearing in cases where any adverse decision is contemplated against the person chargeable with tax or penalty. Consequently, the Court decided to quash the impugned order and remit the case back to the respondents for passing appropriate orders within six weeks. The quashed orders were to be treated as a corrigendum to the Show Cause Notice, allowing the petitioner to file an additional reply within 30 days. The Writ Petition was disposed of with the above observations, with no costs imposed, and connected Writ Miscellaneous Petitions were closed.

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