2021 (7) TMI 1145 - HC - GST

Violation of principles of natural justice - opportunity of personal hearing not provided - specific case of the petitioner is that while settling the bill amounts received, departments had in fact deducted the tax payable - HELD THAT - The petitioner's place of business was inspected by the enforcement wing officials on 10.09.2020. Based on the same, show cause notice was issued on 20.10.2020. The petitioner submitted his reply dated 24.12.2020. However, without granting an opportunity of personal hearing, the impugned orders were straightaway passed. This is on the face of it as violative of Section 75(4) of the Tamil Nadu Goods and Services Tax Act, 2017. The matter is remitted to the file of the respondent to pass orders afresh in accordance with law - petition allowed by way of remand.

Summary

Issues: Violation of Section 75(4) of the Tamil Nadu Goods and Services Tax Act, 2017

In this judgment by the High Court of Madras, the petitioner, a works contractor, raised concerns regarding the deduction of tax by departments while settling bill amounts without confirmation of remittance. The petitioner's business was inspected, leading to the issuance of a show cause notice, followed by the passing of impugned orders without a personal hearing, which was deemed violative of Section 75(4) of the Tamil Nadu Goods and Services Tax Act, 2017. Consequently, the court quashed the impugned orders, allowing the writ petitions and remitting the matter back to the respondent for fresh orders in compliance with the law, emphasizing the necessity of a personal hearing. The court also directed the respondent to independently verify the materials provided by the petitioner and consider taking action against departments that may have deducted tax amounts but failed to remit them, stating that the burden should not solely fall on the petitioner. The judgment concluded by closing the connected miscellaneous petitions without costs.