GST Order Vitiated for No Hearing Details

Centax Editorial Board

February 8, 2026

• 2 min. read

Case Details: Aarti Enterprise vs. State of Gujarat (2026) 39 Centax 31 (Guj.)

Judiciary and Counsel Details

A.S. Supehia & Pranav Trivedi, JJ.
Shri Abhay Y. Desai, for the Petitioner.
Ms Nimisha Parekh, Assistant Government Pleader, for the Respondent.

Facts of the Case

The petitioner-assessee was proceeded against pursuant to the issuance of a notice in Form GST DRC-01A alleging short reversal of input tax credit on the premise that the entire credit availed was common input tax credit and that proportionate reversal was required under section 17(2) of the CGST/ Gujarat GST Act. It was submitted that the notice was uploaded on the portal and reminders were thereafter issued by the jurisdictional officer under GST; however, no response could be submitted due to personal constraints as stated in the record. The petitioner contended that although multiple reminders were issued, at no stage were the date, time or venue of the personal hearing ever intimated, and yet an adjudication order was passed alleging non-appearance. It was urged that the action of passing the order without communicating the particulars of personal hearing was in violation of section 75(5) of the CGST/Gujarat GST Act and contrary to the principles of natural justice. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the record clearly demonstrated that the petitioner had not been intimated of the date, time or venue of personal hearing before passing of the adjudication order, and yet the order recorded alleged non-appearance as the sole basis for confirmation of demand. The Court held that where details of personal hearing are not incorporated in Form GST DRC-01, the proper officer is mandatorily required to separately intimate the assessee of the date, time and venue of such hearing before proceeding to pass a final order. It was held that failure to do so constituted a clear violation of section 75 of the CGST/Gujarat GST Act and the principles of natural justice. On this reasoning, the Court held that the impugned order and all consequential proceedings arising therefrom were liable to be quashed and set aside, and the matter was remanded in accordance with law.