Burden Of Court Increasing Over Violations Of Natural Justice: Allahabad HC Imposes 20K Cost On GST Official For Not Following Mandatory Provision

The Allahabad High Court imposed costs on the GST department for passing a GST demand order without providing the assessee with a proper opportunity for a hearing. The court found that the principles of natural justice were violated when the tax authorities finalized the demand without allowing the taxpayer to present their case and evidence. The High Court emphasized the importance of fair procedure in tax assessments and held that such arbitrary actions cannot be sustained. This ruling serves as a reminder to tax authorities to adhere to due process and ensure that taxpayers are given a fair chance to be heard before any adverse orders are passed against them, safeguarding their rights and promoting transparency in tax administration.