Shree Balaji Enterprises Vs Joint Commissioner of GST & Central Excise (Madras High Court)
HC directs Department to consider matter afresh where reply filed by the Taxpayer through email has not been considered and opportunity of personal hearing not granted: Madras HC
The Madras High Court, in the case of M/s Shree Balaji Enterprises v. Joint Commissioner of GST & Central Excise, has instructed the Goods and Services Tax (GST) Department to reconsider an assessment order where the taxpayer’s reply, submitted via email, was not taken into account and no personal hearing was provided. The petitioner, Shree Balaji Enterprises, challenged an assessment order dated February 17, 2025, and a subsequent rejection order for rectification dated March 18, 2025. The core of the petitioner’s argument was that while they had responded to the show cause notice through email, the department treated it as non-compliance, leading to an assessment order without considering their submissions. Their subsequent rectification application was dismissed on the grounds that the error was not “apparent on the face of the record,” prompting the writ petition. The Madras High Court observed that the petitioner had indeed submitted a reply to the show cause notice via email, though not through the official GST portal, and this reply was not considered during the assessment. The court held that the non-consideration of the reply and the absence of a personal hearing constituted a violation of the principles of natural justice. While clarifying that rectification applications are limited to correcting errors apparent on the face of the record and cannot be used to revisit facts or documents omitted due to procedural lapses, the court nevertheless remanded the matter for fresh adjudication. The court directed that the assessing officer provide an opportunity for a personal hearing to the petitioner and allow them to file their reply either physically or through the portal. Additionally, the petitioner was ordered to deposit 10% of the disputed tax amount before the matter is heard afresh.
