No Consideration Given to Reply to GST DRC-01: Madras HC Remands Case without Pre-deposit Mandate, Directs to Defreeze Bank Account

The Madras High Court has remanded a GST case, directing the authorities to "defreeze a bank account" and not mandate a pre-deposit, as no consideration was given to the reply to GST DRC-01. This crucial ruling underscores the principle of natural justice, emphasizing that a taxpayer's response to a demand notice (DRC-01) must be duly considered before an adverse order is passed or coercive action like freezing accounts is taken. The court's decision provides significant relief, ensuring that taxpayers receive a fair hearing and preventing arbitrary enforcement.