GST Order Set Aside for No Hearing – 50% Deposit Required | HC

Case Details: Sri Selvaganapathy Steels vs. Assistant Commissioner (ST) (FAC) - [2026] 185 taxmann.com 207 (Madras)

Judiciary and Counsel Details

• C. Saravanan, J.
• Adithya Reddy for the Petitioner.
• Ms Amirtha Poonkodi Dinakaran, Government Adv. for the Respondent.

Facts of the Case

The petitioner had been issued a show cause notice (SCN) in Form DRC-01 under the CGST Act and Tamil Nadu GST Act, calling upon it to appear for a personal hearing and submit its reply. It was contended that the petitioner did not avail the opportunity of personal hearing provided in the proceedings, resulting in the passing of the impugned order. The petitioner challenged the said order on the ground that it had been passed without granting an effective opportunity of hearing, and further submitted that the statutory period for filing an appeal had already expired, thereby constraining it to invoke writ jurisdiction. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that under similar circumstances, orders had been quashed and cases had been remitted back to the respondent to pass fresh orders subject to assessee depositing 25 to 100 percent of disputed tax amount, depending upon length of delay in approaching court. It further held that, to balance interest of both parties, the case was to be remitted back to the respondent to pass a fresh order on merits, subject to the petitioner depositing 50 percent of disputed tax amount within 30 days. The petitioner was to file reply to SCN treating the impugned order as an addendum to SCN. It was concluded that the adjudication was to proceed in accordance with Section 75 of the CGST Act and Tamil Nadu GST Act.