Madras HC Sets Aside GST Orders Violating Natural Justice

TVL.PVK Constructions Vs Union of India (Madras High Court)

GST Orders passed in violation of principles of natural justice as request for adjournment was not considered -Madras High Court sets aside GST demands. Case remanded for fresh adjudication.

The petitioner is undertaking construction of buildings. A notice was issued proposing demand on the ground of mismatch and short reporting of turnover for financial year 2017-2018. The petitioner sought adjournment on ground of ill health of the proprietor. However, order confirming demand of tax along with interest and penalty came to be passed. A rectification application under section 161 of CGST was filed. It was allowed. However, for subsequent financial years; the same officer rejected the rectification on the ground that submission of fresh documents cannot be a ground for rectification. Demands of over Rs.40 crores were confirmed. Hence, petitions came to be filed challenging such demands and rectification orders.

The Hon’ble Madras High Court at Madurai set aside the orders and allowed the writ petitions. It held: (i) the orders were passed in violation of principles of natural justice as request for adjournment was not considered; (ii) rejects revenues contention on the ground of alternate remedy; (iii) directs petitioner to file reply in one week and directs the adjudicating authority to reconsider the claim and pass orders in three weeks.