Case Law Details
K.R. Contractor Vs Deputy State Tax Officer – II (Madras High Court)
Introduction: In a recent case before the Madras High Court, the issue of an assessment order passed without a personal hearing was brought into question. The court found that such actions violated principles of natural justice, leading to the order being squashed.
Detailed Analysis: The case, K.R. Contractor Vs Deputy State Tax Officer – II, involved a civil contractor registered under GST statutes. After scrutiny of the petitioner’s returns, a notice was issued alleging discrepancies. Despite the petitioner’s reply, a show cause notice was issued without a personal hearing, leading to an assessment order being passed.
The petitioner argued that no personal hearing was granted, hindering their ability to explain discrepancies. The court noted that while a show cause notice was issued, the petitioner was not afforded a personal hearing, a crucial aspect of natural justice.
The assessment order relied heavily on Form 26AS, disregarding the petitioner’s objections regarding receipts from the pre-GST period. The court observed that justice demanded the petitioner be heard to explain their position adequately.
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