Facts of the case:
In this case, the petitioner challenged assessment orders under Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017 / Central Goods and Services Tax Act, 2017 for the assessment years 2017–18 and 2018–19, demanding ₹18,74,742/- and ₹9,40,694/- respectively. The show cause notices were uploaded on the GST portal. The petitioner contended that upon receipt of the notices, replies were submitted in person but were not uploaded through the GST portal. The assessment orders were thereafter passed on the ground that no reply had been filed online and without granting any opportunity of personal hearing. Pursuant to a direction of the Court dated 02.02.2026, the petitioner deposited 25% of the disputed tax amount and sought an opportunity to contest the matter on merits. The learned Government Advocate fairly admitted that no personal hearing had been granted before passing the impugned orders.
Issue: Whether assessment orders passed under Section 74 solely on the ground that no reply was uploaded on the GST portal, and without granting an opportunity of personal hearing, are sustainable in law?
Held that:
The Court held that the impugned assessment orders were passed in violation of the principles of natural justice. It noted that although the show cause notices were uploaded on the GST portal, the petitioner claimed to have submitted replies in person. The assessment orders were passed solely on the ground that no reply had been filed through the portal, without affording any opportunity of personal hearing. The Court observed that denial of personal hearing in proceedings under Section 74, especially when adverse civil consequences follow, renders the orders unsustainable. In view of the admitted position that no hearing was granted and considering that the petitioner had already deposited 25% of the disputed tax amount, the Court set aside the assessment orders dated 08.01.2024 and 29.04.2024 and remanded the matter to the second respondent for fresh consideration. The petitioner was directed to file replies/objections with supporting documents within two weeks, and the authority was directed to issue a clear 14-day notice fixing a date of personal hearing and thereafter pass fresh orders on merits in accordance with law.
Case Name: Kathiravan Vs Commissioner of State Tax dated 02.02.2026
