Natural justice in GST rectification requires hearing before prejudicial recall or rejection; order was set aside.

Rectification under the Rajasthan GST Act cannot be exercised to the prejudice of a person without affording a hearing. The text states that an order recalling an earlier order and rejecting an application was passed without hearing the petitioner, and that the third proviso to Section 161 requires observance of natural justice where rectification adversely affects a party. Because the impugned action prejudicially affected the petitioner, it was held unsustainable. The impugned order was quashed and set aside, with liberty to pass a fresh order in accordance with law after following the applicable provisions and the principles of natural justice.

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Issues: Whether the order recalling the earlier order and rejecting the application could be sustained when it was passed without affording an opportunity of hearing and whether such action was permissible under the rectification power.

Analysis: The order dated 06.05.2022 was passed without hearing the petitioner. The third proviso to Section 161 of the Rajasthan Goods and Services Tax Act, 2017 requires observance of natural justice where rectification prejudicially affects a person. Since the impugned action adversely affected the petitioner, it could not have been undertaken without giving an opportunity of hearing. The order was therefore not sustainable.

Conclusion: The impugned order was quashed and set aside, with liberty to pass a fresh order in accordance with law after following the applicable provisions and the principles of natural justice.

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