Case Note & Summary
The petitioner, Mr. Sembana Gounder Chinnusamy Senthilkumar, filed a writ petition under Article 226 of the Constitution of India before the Madras High Court challenging two orders: (1) Form DRC-07 dated 25.02.2025 passed by the first respondent, the State Tax Officer/Commercial Tax Officer, Chithode Assessment Circle, Erode, along with a detailed order bearing GSTIN: 33BPHPS8167M1Z4 for the period 2020-21; and (2) Form GST APL-02 dated 27.01.2026 passed by the second respondent, the Deputy Commissioner (CT), Erode. The primary ground for challenge was that both orders were passed in breach of principles of natural justice, as the petitioner was not afforded an opportunity of hearing before their issuance. The writ petition was filed shortly after the expiry of the limitation period. The court noted that on perusal of the impugned orders, it was evident that they were issued without hearing the petitioner. During the proceedings, the petitioner's counsel, on instructions, agreed to remit 25% of the disputed tax demand as a condition for remand, and an endorsement to that effect was made on the bundle. The court, subject to the condition that the petitioner remits 25% of the disputed tax demand (after giving credit to the 10% pre-deposit made while filing the appeal) within thirty days from the date of receipt of a copy of the order, set aside the impugned orders and remanded the matter for re-consideration. The respondents were directed to provide a reasonable opportunity of hearing to the petitioner and pass a fresh order within three months from the date of remittance of the said 25% of the disputed tax demand. The writ petition was disposed of on the above terms, and the connected miscellaneous petitions were closed. No order as to costs was made.
Headnote
A) Constitutional Law - Writ Jurisdiction - Certiorari - Breach of Natural Justice - The petitioner challenged assessment and appeal orders under GST on the ground that they were passed without hearing him. The court found that the orders were issued without affording an opportunity of hearing, constituting a breach of natural justice. The court set aside the orders and remanded the matter for fresh consideration, subject to the condition that the petitioner remits 25% of the disputed tax demand within thirty days. (Paras 1-5) B) GST - Assessment and Appeal - Remand with Condition - Pre-deposit - The petitioner agreed to remit 25% of the disputed tax demand as a condition for remand, after giving credit to the 10% pre-deposit made while filing the appeal. The court directed the respondent to pass a fresh order within three months from the date of remittance after providing a reasonable opportunity of hearing. (Paras 4-5)
Issue of Consideration
Whether the impugned assessment and appeal orders under GST were passed in breach of principles of natural justice and should be set aside.
Final Decision
The court set aside the impugned orders and remanded the matter for re-consideration, subject to the condition that the petitioner remits 25% of the disputed tax demand (after giving credit to the 10% pre-deposit made while filing the appeal) within thirty days from the date of receipt of a copy of the order. The respondents were directed to provide a reasonable opportunity of hearing and pass a fresh order within three months from the date of remittance. The writ petition was disposed of, and connected miscellaneous petitions were closed. No order as to costs.
Law Points
- Principles of natural justice
- Breach of natural justice
- Remand with condition
- Pre-deposit for appeal
- GST assessment
