No Personal Hearing granted on Declaration of Output Tax and Excess ITC Allegations: Madras HC sets aside GST Demand Order

The Madras High Court annulled a demand order from the State Tax Officer against Sri Vijayalakshmi Supplyer, citing failure to provide a personal hearing regarding allegations of under-declaration of output tax and excess Input Tax Credit (ITC) claim. The petitioner argued that despite responding to a show cause notice explaining errors in tax reporting for March 2019, and rectifying them in subsequent filings, no opportunity for a personal hearing was extended. The court, invoking Section 75(4) of GST laws mandating a hearing before adverse orders, deemed the omission a violation of statutory requirements. Consequently, the court overturned the order, directing the tax department to reassess the case, allowing the petitioner to submit additional documentation within two weeks for reconsideration within three months. This decision emphasizes procedural fairness and adherence to legal requirements in tax disputes.