Madras HC Quashes GST Order Issued a Day Before Hearing as Violation of Natural Justice

The Madras High Court has overturned a Goods and Services Tax (GST) order that was issued just one day before a scheduled personal hearing.

On July 21, 2025, Judge Krishnan Ramasamy made an important decision in a case. He ruled that the early release of a key document was a clear violation of fairness in the legal process. As a result, he ordered that the case be sent back for a fresh review.

The applicant, Tvl. Shri Bharathi Weaves, received a show-cause notice dated November 23, 2024, which alleged that they had suppressed their accurate tax liability in the annual returns for the fiscal year 2020-21. In response, the applicant requested a 15-day extension to gather and submit the necessary supporting documents.

The department considered the request and scheduled a personal hearing for February 11, 2025. But the officer has passed the order of assessment dated February 10, 2025, a full day before the date fixed for the hearing.

The counsel of the Applicant has filed the same procedural lapse, and it has been admitted by the government pleader representing the respondent.

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The court cited that the premature issuance of the order nullified the chance for the taxpayer to show its defense and documents, which is fundamental to fair adjudication. Hence, it set aside the impugned order and asked the department to re-adjudicate the case.

The applicant has been authorised to submit the fresh response with documents within 3 weeks. The court then ordered the respondent to issue a 14-day notice for a personal hearing, post which a speaking order is to be passed as per the law and established on the submissions of the applicant.