Phoenix Medical Syatems Private Limited Vs State of Andhra Pradesh (Andhra Pradesh High Court)
Summary: Phoenix Medical Syatems Private Limited, a manufacturer of neonatal medical equipment, challenged GST proceedings arising from discrepancies between its returns and e-way bill turnover for 2021–2022. Following a notice dated 09.03.2023 in Form GST ASMT-10, the authorities issued a show cause notice dated 06.05.2023. The petitioner asserted that it submitted a reply on 05.06.2023 raising preliminary objections and seeking details. Nevertheless, proceedings dated 16.06.2023 directed it to pay tax of Rs.14,30,814.96 Ps. Its appeal was rejected as time-barred by an endorsement dated 15.05.2024.
The petitioner argued that the assessing authority had neither considered its reply nor granted a hearing before making an adverse decision. The Government Pleader disputed any breach of natural justice and relied on the availability of an appellate remedy.
The Andhra Pradesh High Court noted that the petitioner’s reply was annexed to the writ petition. The third respondent did not deny its submission, but stated in the counter affidavit that the reply had not reached his notice and had therefore not been considered. The Court accepted the petitioner’s objection on natural justice. It also found no indication in the proceedings dated 16.06.2023 that a hearing had been offered under Section 75(4). The Court explained that the provision requires an opportunity of hearing when an adverse decision is contemplated, even without a written request from the person concerned.
