HC sets aside order passed on the same day of issuance of SCN citing lack of reasonable opportunity for filing reply

Last updated: 16 September 2024

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Quick Summary

The Madras High Court has quashed a Goods and Services Tax (GST) order that was issued on the very same day the Show Cause Notice (SCN) was served. The court found this violated the principles of natural justice, as the petitioner was not given a reasonable opportunity to respond. This decision aligns with Section 73(2) of the CGST Act, which mandates a minimum three-month period between SCN issuance and order passing to allow for a proper reply.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in the case of M/s.Pithamber Distributors v. Assistant Commissioner (ST), Chennai [W.P. No. 11337 of 2024 dated April 30, 2024], allowed the writ petition, thereby setting aside the order passed citing lack of reasonable opportunity to file a reply to SCN as the Department is required to pass the order after three months of issuance of SCN under Section 73(2) of Central Goods and Services Tax Act, 2017 ("the CGST Act")with an intent to grant reasonable opportunity to file the reply. However, the order was passed on the same day of issuance of SCN.

Citation :
W.P. No. 11337 of 2024 dated April 30, 2024]

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