GST Order States Non-Reply to SCN Despite Responding: Madras HC sets aside Order

In a recent ruling, the Madras High Court set aside a GST order where the state tax authority failed to respond to the show cause notice despite the party’s compliance. The case involved a company that had responded to the notice but was still penalized due to the department's inaction. The Court found that the tax authority's non-response to the valid reply contravened principles of natural justice, emphasizing that a fair hearing is crucial. The decision reinforces the need for administrative bodies to adhere to procedural fairness and proper communication.