GK Industries Vs Deputy State Tax Officer (Madras High Court)
Madras High Court held that finalizing of assessment without considering reply and in absence of personal hearing is against the principles of natural justice. Accordingly, order set aside.
Facts- The respondent issued a show cause notice on 27.12.2023 vide the common portal under “View Additional Notices/Orders.” A reminder notice was later issued on 04.2024, for which the petitioner filed a reply in FORM GST DRC-06 on the same day. However, without considering this reply, the respondent passed the impugned order on 26.04.2024, allegedly in contravention of Section 75(4) of the GST Act.
Challenging the order and the summary of Order in DRC-07 dated 26.04.2024, the petitioner has filed this writ petition.
Conclusion- Held that in the present case, the petitioner was deprived of the opportunity to present their case, as the assessment was finalized without considering the reply and in the absence of a personal hearing. Furthermore, 41% of the demanded tax amount was recovered from the petitioner on 25.07.2024, after the impugned order was passed. Since a significant portion of the tax amount has already been recovered, this Court does not impose any further terms. Given these circumstances, the impugned order is liable to be set aside.
