2024 (10) TMI 1237 - HC - GST

High-Stakes Tax Dispute Overturned: Natural Justice Prevails, Respondent Must Reissue Order After Fair Hearing Under Principles of Procedural Fairness

Tvl. Rasandik Auto Components Private Limited Versus The Assistant Commissioner (ST) (FAC) Hosur (South-1)

The HC of Madras nullified an order due to violation of natural justice, finding the petitioner was not informed of proceedings. The court directed the ... Violation of principles of natural justice - SCN and other communications were uploaded in the “view additional notices and orders” tab in the GST portal and not communicated to the petitioner through any other mode - petitioner submits that the petitioner is in a position to explain each defect confirmed in the impugned order, if provided an opportunity - HELD THAT:- On examining the impugned order, it is evident that the tax proposals were confirmed because the petitioner did not file a written objection to the show cause notice or attend the personal hearing. In view of the assertion that such non participation was on account of not being aware of proceedings, the interest of justice warrants reconsideration subject to putting the petitioner on terms. The impugned order dated 28.12.2023 is set on condition that the petitioner remits 10% of the disputed tax demand, as agreed to, with in fifteen days from the date of receipt of a copy of this order. With in the said period, the petitioner is permitted to submit a reply to the show cause notice - petition disposed off. The High Court of Madras set aside the order dated 28.12.2023 due to breach of natural justice principles. The petitioner was not informed of proceedings, leading to non-participation. The petitioner agreed to remit 10% of disputed tax demand for reconsideration. The court directed the respondent to provide a reasonable opportunity for the petitioner to respond to the show cause notice and issue a fresh order within three months. Case disposed of with no costs.