Phoenix Medical Syatems Private Limited vs. The State Of Andhra Pradesh

Held

The High Court held that the assessment order was violative of principles of natural justice as the petitioner's reply was not considered. It also found a breach of Section 75(4) of the Act, which mandates an opportunity of hearing when an adverse decision is contemplated. Consequently, the initial assessment and the subsequent appellate rejection on limitation were set aside, with liberty for the respondent to proceed afresh.

Facts

The petitioner, a manufacturer of neonatal medical equipment, received a notice in Form GST ASMT-10 for discrepancies in e-way bills turnover. Following an alleged failure to respond, a show cause notice under Section 74(1) of the APGST Act was issued. The petitioner claimed to have submitted a reply, which the respondent stated was not received or considered, leading to a final assessment order in DRC-07.

Key Issues

The key legal issues were whether the assessment order violated principles of natural justice due to non-consideration of the petitioner's reply and if the mandatory opportunity of hearing under Section 75(4) was denied before passing an adverse order.