Gujarat High Court Quashes GST Rectification Order for Violation of Natural Justice

Modi Traders (Petitioner) approached the High Court of Gujarat in Ahmedabad against the Union of India and Ors.‘ rectification order dated August 2, 2025.

Earlier, on December 4, 2025, the court had asked the Union of India and Ors to take instructions. After doing so, the AD admitted that the rectification order dated August 2, 2025 may be set aside by remanding the matter to the respondent authorities for passing a fresh order of rectification because it is in violation of proviso to Section 161 of the Central/Gujarat Goods and Services Tax Act, 2017 and no opportunity for hearing was granted.

Due to this admission and the legal violation, the court quashed the disputed order dated August 13, 2024. The court directed the GST department to reconsider the issue afresh, but this time they must strictly follow the principles of natural justice.

The Court instructed to give proper opportunity to the assessee for a personal hearing, as required under Section 75(4) of the GST Act, before passing any new order and further directed the authorities to pass a fresh and lawful order within 12 weeks. With these directions, the petitions were disposed of, and the court allowed the case only to this limited extent.