Krith Enterprises Vs State Tax Officer (FAC) (Madras High Court)
In the case of Krith Enterprises Vs. State Tax Officer (FAC), the Madras High Court addressed a Writ Petition seeking to quash the impugned order No.ZD331223281028O dated December 30, 2023, issued under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017, and the corresponding Tamil Nadu Goods and Services Tax (TGST) Act for the fiscal year 2017-18. The petitioner contended that the order was passed without providing sufficient reasoning and that they were only given one opportunity for a personal hearing, contrary to the four hearings stipulated in Section 75(5) of the CGST Act. The petitioner argued that this limited opportunity deprived them of the ability to adequately defend against the charges due to notifications and orders being uploaded on a portal without proper visibility.
The respondent, represented by the Special Government Pleader, contended that the notices and orders were properly issued through the GST Portal, implying that the petitioner should not claim a breach of natural justice principles. However, the Court acknowledged the petitioner’s concerns regarding the lack of adequate personal hearing and the dismissal of their replies without proper consideration. Ultimately, the Madras High Court decided to set aside the impugned order, provided the petitioner deposits 10% of the disputed tax demand within four weeks of receiving a copy of the order. The Court directed that the matter be remitted back to the respondent for reconsideration, with the petitioner required to submit their reply within two weeks. Following this, the authorities were instructed to schedule a physical personal hearing and send a notice providing 14 days’ notice before issuing a new order based on merits and applicable laws.
