Guru Cycle Mart Vs State Tax Officer (Intelligence) (Madras High Court)
The Madras High Court recently rendered a significant judgment in the case of Guru Cycle Mart versus the State Tax Officer, addressing issues under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act). The core contention revolved around the issuance of Form GST DRC-01 without an accompanying show cause notice, which the petitioner argued violated principles of natural justice.
The petitioner, represented by Mr. A. Satheesh Murugan, contested that despite receiving intimation notices (DRC-01A and DRC-01), they were not accompanied by a formal show cause notice. The petitioner responded to these notices but proceeded to challenge the subsequent orders dated May 3, 2024, and May 6, 2024, issued under Section 73 of the TNGST Act.
The High Court, after considering submissions from both sides, acknowledged that the impugned orders were indeed issued in contravention of principles of natural justice. The Court emphasized that the right to a fair hearing and the opportunity to respond to allegations are fundamental aspects of procedural fairness in administrative proceedings.
Consequently, the Madras High Court quashed the orders issued under Section 73 and directed that they be treated as an addendum to the notice in DRC-01. The petitioner was granted 30 days to respond to these revised proceedings. Additionally, the Court instructed the respondent authority to complete the proceedings within three months from the date of the order.
