The Madras High Court held that passing an adverse order on a rectification application without granting proper notice or opportunity of hearing violates the principles of natural justice. The Court further clarified the maintainability of writ petitions when an original order is superseded by a rectification order.
Facts of the Case
- The petitioner challenged an original GST demand order before the authorities.
- Subsequently, the department passed a rectification order, which:
- Reversed the earlier original demand, and
- Confirmed a fresh tax demand on a different ground.
- The petitioner sought further rectification of the rectification order.
- This subsequent rectification application was rejected without issuing a proper notice or granting an opportunity of hearing.
- The petitioner filed a writ petition challenging the original demand order.
Issue Before the Court
Whether a writ petition against the original demand order is maintainable when such order has already been superseded by a rectification order, and whether rejection of rectification without proper notice is valid.
Held
- The High Court held that once a rectification order is passed, the original order stands superseded.
- Consequently, a writ petition challenging the original order is not maintainable.
- The proper remedy for the assessee is to challenge the rectification order or the order rejecting further rectification.
- Since the rectification rejection was passed without granting proper notice or opportunity, it violated principles of natural justice.
- The matter was remanded to the authority for fresh consideration, after affording due opportunity to the petitioner.
Key Takeaways
- An original order ceases to exist independently once a rectification order is passed.
- Any challenge must be directed against the rectification order, not the original order.
- Adverse orders on rectification applications require prior notice and hearing.
- Violation of natural justice can result in remand for fresh adjudication, even at the rectification stage.
Conclusion
This ruling reinforces that rectification proceedings under GST are not immune from natural justice requirements and clarifies the procedural route for assessees when multiple rectification orders intervene.
Citation:
17 Dec 2025 | [2025] 181 taxmann.com 357 (Madras) | GST