Jakam Sekar Ranjith Vs Assistant Commissioner (ST) (FAC) (Madras High Court)
Madras High Court held that passing of order under GST without granting opportunity of personal hearing is against the principles of natural justice. Accordingly, order is set aside and appeal is allowed.
Facts- In respect of assessment year 2020-21, the petitioner made sales at Rs.1,66,30,418/-. However, the purchaser made outward supply to an extent of Rs.1,21,01,218/-and there was a difference in the turnover to an extent of Rs.45,29,200/-. The petitioner kept some stocks for the purpose of catering the needs of the purchaser. There is a practice that the purchaser will come on later point of time to purchase and the same would follow in the entries. In this regard, the petitioner had submitted its reply for the aforesaid alleged difference. However, the reply was not accepted by the respondent on the ground that along with the reply, the petitioner has not produced any documentary evidence.
The petitioner alleged that no opportunity of personal hearing was provided to the petitioner before passing the impugned order. If the respondent provided personal hearing, the petitioner would have explained the aforesaid difference. Without doing so, the impugned order came to be passed by the respondent, which is in violation of principles of natural justice.
