K.A.V. SHAIK ROWTHER v. ASSISTANT COMMISSIONER CENTRAL TAX AND CENTRAL EXCISE & ORS

Introduction

This judgment clarifies the distinction between denial of an opportunity of personal hearing and failure of the taxpayer to avail the opportunity already granted. The Kerala High Court held that where the department has fixed a specific date for personal hearing in the show cause notice and the taxpayer chooses not to appear, the order cannot be challenged on the ground of violation of principles of natural justice. In such circumstances, the appropriate remedy is to file an appeal under Section 107 of the CGST Act.

Background of the Case

The petitioner, a wholesale dealer in building materials registered under the GST Act, was subjected to scrutiny of returns for the financial year 2020-21.