2025 (6) TMI 1343 - HC - GST

Rejection of rectification application - erroneous on facts - non-application of mind - violation of principles of natural justice - HELD THAT - A reading of the impugned order indicates a complete nonapplication of mind and a violation of the principles of natural justice as the petitioner was not heard despite having a right to be heard before the passing of such an order. Therefore the impugned order is liable to be set aside and the matter is remitted back to the respondent to pass a fresh order under Section 161 of the respective GST Enactments after affording an opportunity of hearing to the petitioner preferably within a period of three months from the date of receipt of a copy of this order. Petition disposed off.

Summary

The Madras High Court, through Hon'ble Justice C. Saravanan, disposed of the writ petition at the admission stage. The petitioner challenged the respondent's orders dated 17.02.2025 and 21.05.2025 rejecting an application for rectification under Section 161 of the GST Act, 2017, on grounds that the application was barred by time and did not disclose an "error apparent on the face of the record," but rather sought to alter substantive findings beyond Section 161's scope.The Court found "a complete nonapplication of mind and a violation of the principles of natural justice," noting the petitioner was not afforded a hearing prior to the impugned order. Emphasizing the right to be heard, the Court held the impugned order liable to be set aside and remitted the matter for a fresh decision under Section 161, directing the respondent to afford the petitioner an opportunity of hearing within three months. The petition was disposed of accordingly, with no costs.