Case Law Details
Prosign Communications Vs Deputy State Tax Officer II (Madras High Court)
The recent judgment by the Madras High Court in the case of Prosign Communications Vs Deputy State Tax Officer II has stirred discussions in the legal arena. The court’s decision to set aside GST assessment orders for the assessment periods 2017-18 and 2018-19 has significant implications, particularly regarding the principles of natural justice.
The crux of the matter lies in the alleged breach of natural justice principles, specifically concerning the denial of a personal hearing to the petitioner, Prosign Communications. Despite responding to the show cause notice issued in October 2023, the petitioner was not afforded a personal hearing before the issuance of the impugned orders.
Section 75(4) of the applicable GST enactments mandates that a personal hearing should be granted either upon request or when an adverse order is proposed against the taxpayer. The court’s scrutiny revealed a clear contravention of this statutory provision, compelling the intervention to set aside the impugned orders.
The learned counsel for the petitioner emphasized the importance of adhering to procedural fairness, arguing that the absence of a personal hearing deprived the petitioner of the opportunity to present their case effectively. Conversely, the Additional Government Pleader contended that the initiation of proceedings followed due process, citing compliance with principles of natural justice.
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