Natural justice requires notice before GST rectification affects liability; ex parte re-quantification was set aside and remitted.
A rectification order under Section 161 of the GST Act that re-quantified the demand and affected the assessee's liability was found unsustainable because it was passed without prior notice or opportunity of hearing. The court treated this as a breach of fair procedure and natural justice, and therefore set aside the order. The matter was remitted for fresh consideration on merits after notice and hearing.
Issues: Whether the rectification order passed under Section 161 of the respective GST Act, 2017, without notice to the petitioner, was sustainable and whether it was liable to be set aside with a direction for fresh adjudication.
Analysis: The impugned order re-quantified the demand earlier proposed and was passed in exercise of rectification power under Section 161. The order was found to have been made without due notice to the petitioner, contrary to the requirements of fair procedure and natural justice. In these circumstances, the order could not be sustained.
Conclusion: The rectification order was held to be unsustainable, set aside, and the matter was remitted to the respondent to pass a fresh order after giving the petitioner an opportunity of hearing.
Final Conclusion: The writ petition succeeded, and the dispute was sent back for fresh decision on merits in accordance with law after notice and hearing.
Ratio Decidendi: A rectification order affecting the assessee's liability cannot be sustained when passed without prior notice and opportunity of hearing, and such an order is liable to be set aside and remitted for fresh consideration.
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