Can a rectification application under Section 161 of the GST Laws be rejected without a personal hearing?
Is the rejection of an application for rectification considered an "adverse order" that mandates a personal hearing before being issued?
In the case of Orissa Stevedores Ltd. vs Deputy Commissioner of CT and GST, Orissa High Court ruled that an order rejecting a rectification application without providing any reason must be set aside, and the rectification application should be restored.
• Petitioner sought rectification of a GST order.
• Department rejected it without reasons or a hearing.
• Department argued no hearing is required for rectifications and that the petitioner could appeal.
• Court held that the petitioner deserved reasons and a hearing.
The Court quashed an order rejecting a rectification application under Section 73 of the CGST Act because it lacked reasoning and did not give the petitioner a hearing.
This decision underscores that even seemingly minor procedures require adherence to principles of natural justice.
Title: Orissa Stevedores Ltd. vs Deputy Commissioner of CT and GST
Court: Orissa High Court
Citation: W.P.(C) No. 13696 of 2024
Dated: 07-Aug-2024
Abhishek Raja "Ram"
@abhishekrajaram
MEC, STBA Delhi || Speaker and Author on GST. Life dedicated towards Tax and Economic Reforms & Simplification