GST Rulings

Can lack of hearing opportunity be alleged without replying to SCN?

Facts

Petitioner failed to reply to the notice u/s.61 of the CGST Act, 2017 as well as show cause notice (SCN) u/s.73 ibid. Hence, opportunity of personal hearing was not demanded by the petitioner. There was no application even to seek an extension of time to file a reply.

Order of the High Court of Allahabad

[dated 09.07.2024, in Chaudhary Associates Lko. v. State of U.P., from Writ Tax No. 172 of 2024]

Even if date, time or place of hearing is not indicated in SCN, it was the petitioner's duty to file reply to the SCN (admittedly received by him). He chose to ignore the SCN. In such cases, the plea of denial of opportunity of hearing and violation of principles of natural justice cannot be accepted. Therefore, the writ petition was dismissed in view of statutory remedy of appeal available under Section 107 ibid.

Comments

The clean hands doctrine is based on the maxim of equity which states that one “who comes into equity must come with clean hands.” Therefore, it is imperative to reply to a notice and seek an extension for time to reply (if needed).

Srinivasan V, Advocate

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