HC Sets Aside GST Section 74 Order, Grants Fresh Opportunity to File Reply:

The Madurai Bench of the Madras High Court has set aside a GST assessment order passed under Section 74 of the Central Goods and Services Tax Act, 2017, and remanded the matter to the adjudicating authority after granting the taxpayer another opportunity to submit a detailed reply and supporting documents.

The petitioner, M/s R.R. Minerals, challenged the Order-in-Original dated 19 December 2025 and the consequential GST DRC-07 issued by the Superintendent of CGST and Central Excise. The petitioner submitted that although a show cause notice had been issued, it could not effectively respond to the proceedings. It stated that no comprehensive reply was filed, it attended only the third personal hearing, and merely furnished certain DRC forms before the authority. The petitioner contended that it possessed additional documents relevant to the dispute and sought one more opportunity to place them on record.

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The Revenue opposed the writ petition, arguing that sufficient opportunities had already been provided. It is submitted that the petitioner neither filed a reply nor appeared for the first two personal hearings and failed to produce the necessary material before the assessing authority.

After examining the record, the High Court observed that the impugned order had been passed without the benefit of a detailed explanation or supporting evidence from the petitioner. Considering the circumstances and noting that the entire disputed tax amount had already been recovered, the Court held that the interests of justice warranted one final opportunity for the petitioner to present its case.

Thus, the Court set aside the assessment order dated 19 December 2025 and remanded the matter to the Superintendent of CGST and Central Excise for fresh adjudication. The petitioner was directed to file a detailed reply along with all supporting documents within three weeks from receipt of the order. The assessing authority was directed to consider the reply, provide a personal hearing, and pass a fresh order in accordance with the law.

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