Candour Auto Components Represented by its Partner Mr. Kasinathan Ilaiyaraja Vs Deputy Commercial Tax Officer (Madras High Court)
In the case of Candour Auto Components vs. Deputy Commercial Tax Officer, the Madras High Court addressed the issue of a GST order issued under Section 73 of the Tamil Nadu GST Act and CGST Act. The petitioner, represented by Mr. Kasinathan Ilaiyaraja, argued that the show cause notice was only uploaded on the GST portal and not physically served, leaving the petitioner unaware of the proceedings. The respondent raised a demand of ₹33,97,729 for excess input tax credit availed during FY 2017-18, but the petitioner did not file a reply as they were unaware of the notice. The court found this claim valid and ruled that the principles of natural justice were violated due to the lack of a personal hearing. The court set aside the impugned order and remanded the matter back to the authorities for reconsideration, on the condition that the petitioner deposits 10% of the disputed tax within four weeks and submits a reply within two weeks. The authorities are required to provide a personal hearing and issue a new order based on merit.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
