Suriya Cement Agency Vs State Tax Officer (ST) (Madras High Court)

Madras High Court held that proviso 3 to section 161 of the CGST Act provides that it is mandatory to grant an opportunity of being heard if rectification order is detrimental to the interest of assessee.Facts- The challenge in the Writ Petition is the Order of Assessment and also the order passed in the Rectification Application. Petitioner contended that the Rectification Application of the Order of Assessment dated 20.12.2023 was filed within the given time. However, the first respondent without assigning any reasons as to how the order of assessment does not suffer from any apparent error and that too without giving any opportunity of hearing has rejected the application of rectification.Conclusion- Held that the provisio indicates that when an order is being made adverse to the assessee, then he should be given an opportunity of being heard when the rectification adversely affects any person. The principles of natural justice had been inbuilt by way of the 3^rd Proviso to Section 161. If pursuant to a Rectification Application, if a rectification is made and if it adversely affects the assesse, Proviso 3 contemplates an opportunity of hearing to be given.