Failure to Reply to GST SCN due to Genuine Belief of Inability to Respond after Registration Cancellation: Madras HC sets aside Order

The Madras High Court set aside a GST order passed due to the assessee’s failure to respond to a show cause notice (SCN). The assessee argued that after the cancellation of their GST registration, they believed they were not required to respond to the SCN. The court found this to be a genuine belief and allowed the appeal, setting aside the ex-parte order. The court stressed the importance of giving an opportunity for a fair hearing and stated that the assessee should be given a fresh chance to reply to the SCN. This ruling reinforces the principle of natural justice in taxation matters.