Natural justice controls GST rectification rejections: hearing and reasons are required before a section 161 request can be refused.
A rectification application under section 161 of the GST enactments must be decided in conformity with natural justice. Where the rejection was passed without affording personal hearing and without recording reasons, the order was unsustainable and was set aside. The matter was remitted for fresh consideration on merits and in accordance with law after hearing the petitioner. The stated principle is that a rectification rejection under section 161 must be a reasoned order and cannot disregard the right to be heard.
Issues: Whether the rejection of the rectification application under section 161 of the GST enactments, without personal hearing and without reasons, was sustainable.
Analysis: The impugned order rejected the rectification request on the ground that section 161 applies only to correction of errors apparent on the face of the record. However, the order was found to have been passed without affording an opportunity of personal hearing and without recording reasons. In view of the absence of both hearing and reasoning, the rejection could not be sustained.
Conclusion: The rejection order was unsustainable and was set aside.
Final Conclusion: The matter was remitted to the respondent for fresh consideration of the rectification application on merits and in accordance with law after hearing the petitioner.
Ratio Decidendi: An order rejecting a rectification application under section 161 of the GST enactments must conform to the principles of natural justice and must be a reasoned order.
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