📰 𝗠𝗮𝗱𝗿𝗮𝘀 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗣𝗿𝗼𝗽𝗲𝗿 𝗦𝗵𝗼𝘄 𝗖𝗮𝘂𝘀𝗲 𝗡𝗼𝘁𝗶𝗰𝗲 𝗠𝘂𝘀𝘁 𝗯𝗲 𝗜𝘀𝘀𝘂𝗲𝗱 𝗯𝗲𝗳𝗼𝗿𝗲 𝗔𝗱𝘃𝗲𝗿𝘀𝗲 𝗢𝗿𝗱𝗲𝗿 𝗶𝗻 𝗚𝗦𝗧 𝗖𝗹𝗮𝗶𝗺𝘀

📢 The court held, "An adverse order cannot be passed without issuing a clear, detailed show cause notice, allowing the affected party a fair chance to respond."

🔍 𝗙𝗮𝗰𝘁𝘀: • 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Hatsun Agro Product Ltd. v. The Deputy Commissioner • 𝗖𝗮𝘀𝗲 𝗡𝘂𝗺𝗯𝗲𝗿: W.P.No.17861 of 2023, WMP Nos.16983 & 16984 of 2023 • 𝗖𝗼𝘂𝗿𝘁: Madras High Court • 𝗗𝗮𝘁𝗲: 15-Jun-2023

𝗜𝘀𝘀𝘂𝗲: Hatsun Agro contested an order for the reversal of Input Tax Credit (ITC) under the Tamil Nadu Goods and Services Tax Act, 2017, arguing that the Assessing Officer had not issued a proper show cause notice before the initial order, denying them a fair hearing.

𝗧𝗶𝗺𝗲𝗹𝗶𝗻𝗲: • 09-Sep-2022: Communication from the Assessing Officer stated Hatsun’s ITC was ineligible. • 17-Mar-2023: Initial assessment order passed without adequate opportunity for Hatsun Agro to respond. • 15-Jun-2023: The court set aside this assessment, treating it as a show cause notice, allowing Hatsun to present their case fully.

• 13-Jul-2023: Scheduled hearing for Hatsun Agro to present supporting evidence. • 25-Aug-2023: Deadline for the new order to be issued post-hearing.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Madras High Court emphasized that before issuing an adverse order, the taxpayer must receive a show cause notice detailing specific allegations and providing sufficient time to respond. The court ordered that the initial assessment be treated as a show cause notice and allowed Hatsun Agro an opportunity to present their case before any final determination.

📜 This ruling reinforces the principles of natural justice, ensuring that taxpayers are granted a fair and transparent process, especially when their financial interests are at stake. The court’s stance on procedural fairness sets a significant precedent, mandating that authorities must issue specific, clear, and detailed show cause notices before making decisions. Team GSTpanacea 7503031378