Failure to Attend Hearing Bars Natural Justice Plea in GST Assessment

Case Title: K.A.V. Shaik Rowther v. Assistant Commissioner, Central Tax & Central Excise
Court: High Court of Kerala, Division Bench
Petition No.: W.A. No. 289 of 2025 (arising from WP(C) No. 3340 of 2025)
Judgment Date: 11 February 2025
Category of Dispute: Natural Justice / GST Assessment Order
Relevant Section: Section 107, CGST Act, 2017

Facts of the Case (¶2–3)

• The appellant, a wholesale dealer in building materials registered under GST, was issued an order dated 16.01.2025 imposing tax, penalty, and interest for AY 2020-21.

• He challenged the order alleging violation of natural justice, contending that no personal hearing was granted.

• The Single Judge dismissed the writ petition on 28.01.2025 noting that the appellant failed to attend the scheduled hearing on 06.01.2025, and directed him to avail the alternative appellate remedy under Section 107 of the CGST Act.

Question(s) in Consideration (¶2–4)

• Whether the impugned assessment order (Ext.P6) was passed in violation of principles of natural justice since the appellant alleged he was not granted a hearing.

Observation of the Court (¶4–5)

• The appellant had replied to the show cause notice on 24.12.2024, received by the department on 27.12.2024, and requested 15 days’ time to furnish further clarification.

• Despite this, he did not submit any additional material between 27.12.2024 and 06.01.2025 nor did he appear for the scheduled hearing on 06.01.2025.

• The Court held that failure to appear for the personal hearing and inaction after requesting more time disentitled the appellant from alleging breach of natural justice.

• The responsibility for the predicament lay solely on the appellant.

Judgment of the Court (¶5)

• The Division Bench upheld the Single Judge’s order.

• It ruled that there was no violation of natural justice as the appellant failed to avail the opportunity granted.

• The writ appeal was dismissed, and the appellant was relegated to the statutory appellate remedy under Section 107 of the CGST Act.

Between Fine Lines (Simple Outcome in 5 Points)

1. GST demand order was passed for AY 2020-21.

2. Dealer claimed violation of natural justice since no hearing was granted.

3. Records showed hearing was scheduled on 06.01.2025, but dealer did not attend.

4. Court held non-appearance was his own lapse; natural justice not violated.

5. Writ appeal dismissed; remedy lies under Section 107 appeal provision.

Summary of Referred Cases

(No external case law was referred by either side in this judgment. Hence, table not applicable in this case.)

Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”