2025 (4) TMI 554 - HC - GST

Violation of principles of natural justice - Challenge to impugned SCN and the Audit Report - demand of tax alongwith interest - HELD THAT - In the case on hand the Audit Memo was issued on 09.11.2022 wherein the petitioner was directed to furnish their reply within a period of two working days. However the petitioner was not in a position to file their reply within time. Subsequently the respondent had finalized the draft Audit report on 14.11.2022. In such case it is an admitted fact that the reply was not at all considered by the respondent while passing the draft Audit Report. It is clear that the reply was not filed by the petitioner before preparing the draft Audit Report. However it is not that the petitioner had once for all lost his opportunity of filing their reply. The petitioner is granted liberty to file their reply to the impugned show cause notice dated 19.09.2023 within a period of 4 weeks from the date of receipt of a copy of this order - Upon receipt of the said reply the respondent shall independently consider the reply filed by the petitioner on its own merits and pass orders in accordance with law after providing sufficient opportunities to the petitioner as expeditiously as possible. Conclusion - While the petitioner s reply was not considered before the draft Audit Report they still had the opportunity to address grievances by responding to the show cause notice.The court ordered that the petitioner is granted liberty to file a reply to the show cause notice within four weeks. Petition disposed off.

Summary

**Summary:**In the case before the Madras High Court, presided over by Hon'ble Mr. Justice Krishnan Ramasamy, the petitioner challenged the impugned show cause notice dated 19.09.2023 and the Audit Report dated 31.01.2023. The petitioner argued that their replies to the Audit Memo, initially issued on 09.11.2022, were not considered before the finalization of the draft Audit Report on 14.11.2022, which demanded a sum of Rs. 3,98,78,666/-.The respondent contended that the petitioner's replies were liable to be rejected and suggested that grievances should be addressed by replying to the impugned show cause notice. The court noted that while the petitioner's reply was not considered before the draft Audit Report, they still had the opportunity to address grievances by responding to the show cause notice.The court ordered that the petitioner is granted liberty to file a reply to the show cause notice within four weeks. The respondent must then consider this reply independently and pass orders in accordance with the law, ensuring sufficient opportunities for the petitioner. The writ petitions were thus disposed of with no costs, and connected miscellaneous petitions were closed.