The bench observed that the absence of a personal hearing before issuing the impugned GST demand order amounted to a violation of the principles of natural justice

The Madras High Court sets aside an ex parte Goods and Services Tax ( GST ) demand order issued six months after the Show Cause Notice ( SCN ) on 10% pre-deposit condition. The court also directed to lift the bank account on receipt of the payment. A GST demand order was issued by the GST department on December 27, 2023 concerning the assessment year 2017-18. The Petitioner, Road Linkers Express Service contended that the demand notice was issued on June 28, 2023, and the impugned ex parte order was passed beyond the limitation period. Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here Moreover, the petitioner argued that the order was issued without any opportunity for a personal hearing, thereby violating the principles of natural justice. Consequently, the petitioner requested the Court to lift the bank attachment imposed by the authorities based on the impugned order. The department, represented by Additional Government Pleader Mr. T.N.C. Kaushik, admitted that while the department had issued a demand notice, the petitioner failed to respond to it. However, the respondent also acknowledged that the order had been passed without providing the petitioner an opportunity for a personal hearing, which is a critical procedural requirement. Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here Thus, the counsel of the respondent requested the Court to remit the case back for fresh consideration, subject to the condition that the petitioner pays 10% of the disputed amount. Justice Krishnan Ramasamy observed that the absence of a personal hearing before issuing the impugned GST demand  order amounted to a violation of the principles of natural justice. The High Court set aside the ex parte order and remanded the matter to the GST authorities for fresh consideration on 10% pre-deposit payment within four weeks. Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here The bench also instructed the GST authorities to provide the petitioner with a clear 14-day notice for a personal hearing, ensuring that the case is heard on merits. In addition, the Court directed the department to instruct the concerned bank to release the attachment immediately upon receiving proof of the 10% payment.