GST Order issued imposing Penalty u/s 74 without Granting Hearing Opportunity: Madras HC sets aside order

The Madras High Court has set aside a GST order imposing penalty under Section 74 without granting a hearing opportunity, citing a violation of natural justice. Section 74 deals with demands and penalties for tax not paid due to fraud or willful misstatement. The court emphasized that even in cases of serious allegations, taxpayers must be afforded a fair hearing before a penalty order is passed. This ruling underscores the fundamental principle of audi alteram partem (hear the other side), reiterating that procedural fairness is paramount, even in revenue recovery cases.