High Court quashes Goods and Services Tax demand order issued without hearing details

A Goods and Services Tax (GST) demand order was quashed by the court because the corresponding notice left the hearing date, time, and venue marked as 'NA' (not applicable). The adjudicating authority failed to provide the taxpayer a proper opportunity of being heard by omitting these essential particulars. The court held that such procedural flaws vitiate the entire adjudication process. Natural justice requires that every taxpayer facing a tax demand must be given a fair chance to present their case through a duly scheduled personal hearing.

In practice, automated tax portals or careless departmental notices occasionally generate demand orders without filling in mandatory hearing schedules. The correct legal position requires authorities to explicitly communicate hearing details, and failure to do so renders the resulting demand order legally invalid. Tax professionals and compliance teams should carefully review all GST show-cause notices and demand orders for blank or missing hearing schedules.

If hearing details are marked as 'NA' or omitted, counsel should file writ petitions or appeals to set aside the defective demands. Bottom line: protect clients from illegal tax demands by identifying and challenging procedural lapses in hearing notifications.