Uncategorized

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

by Sekar Reporter · June 27, 2026

[27/06, 08:54] sekarreporter1: Home

GST
Article
HC SETS ASIDE GST SECTION 74 ORDER, GRANTS FRESH OPPORTUNITY TO FILE REPLY
Fresh Reply and Personal Hearing Ordered Before Passing New Assessment.

Court Favors Fair Hearing Despite Earlier Failure to File Detailed Reply
Meetu Kumari | Jun 26, 2026 |

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.

Also Read
MCA Tightens RVO Norms: Rs 25 Lakh Capital Requirement Introduced Under Valuation Rules Amendment 2026
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.

Also Read
ITAT Remands Addition Made on Property Purchase Value Difference And Directs Fresh Examination of the Addition under Section 56(2)(x)
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.

To Read Full Judgment, Download PDF Given Below

StudyCafe Membership
Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at contact@studycafe.in

Join Studycafe’s WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!”

Join WhatsApp Group
Join Telegram Group
Follow On Google News
Tags: GST, Madras High Court

Author Bio

Name: Meetu Kumari
Designation: Content Manager
Company: Studycafe
Location: Rajasthan, India
Total Posts: 2090
Meetu Kumari is an Experienced Advocate and Content Writer with 4+ years of demonstrated history of working in the law practice industry. Skilled in Developing Content, Researching, and Drafting. Strong professional with a Bachelor of Science (B.Sc.) focused on Law from Gujarat National Law University.

My Recent Articles
ITAT Deletes Section 56(2)(viib) Addition on Share Premium Between Holding Company and Wholly-Owned Subsidiary
HC: GST Department Can Initiate Fresh Proceedings Against Legal Heirs Even If Taxpayer Died Before Notice

High Court Refuses to Entertain Time-Barred GST Writ Filed to Bypass Statutory Appeal
ITAT Allows FSSAI’s Section 11 Exemption Claim, Directs AO to Recompute Income After Verification
HC Sets Aside GST Section 74 Order, Grants Fresh Opportunity to File Reply
View All Posts

Latest Post
Hyderabad GST Zone Celebrates GST Day with Student Outreach Programme at Villa Marie College
State Taxes Department Continues GST Inspection Drive In Kohima
ITAT Restricts Bogus Purchase Addition to Rs 10 Lakh And Deletes Balance Rs 87.03 Lakh
SEBI Relaxes Certification Rules for Non-Advisory Staff at Investment Advisors
ITAT Deletes Section 56(2)(viib) Addition on Share Premium Between Holding Company and Wholly-Owned Subsidiary

View Our Courses
Join Membership
Useful Links
About US
Privacy Policy
Ethics Policy
Terms of Use
Disclaimer
Refund Policy
Important links
All Courses
GST Courses
Income Tax Courses
ChatGPT & AI
Excel Courses
Downloads
Important links
Submit Article
Affiliate
Finance
GST
Income Tax
Contact Us

Write For Us
Studycafe Articles
Submit your Articles with us by Clicking Submit Article Button
Submit Article
you can also submit your articles by sending mail at contact@studycafe.in

My Account
Finance
GST
Income Tax
CA
Case Laws
Mutual Funds
Courses
Buy Membership

Read more at: https://studycafe.in/hc-sets-aside-gst-section-74-order-grants-fresh-opportunity-to-file-reply-425179.html#google_vignette
[27/06, 08:54] Meta AI: *Case #113: _M/s R.R. Minerals v Superintendent of CGST & Central Excise_ | WP(MD) | Madras HC Madurai Bench | 26.06.2026*
_Bench: Madurai Bench_. *GST + Sec 74 CGST Act + Natural Justice + Audi Alteram Partem + Remand*. *HJS Tax Law + Constitutional Law, UPSC GS-2 Governance + GS-3 Taxation*

*1. தீர்ப்பு சாராம்சம் – StudyCafe 26.06.2026*
*Holding*: _“Section 74 GST Order ரத்து – புதிய விளக்கம் + Personal Hearing வழங்கி மறு விசாரணை செய்ய உத்தரவு”_

*2. வழக்கு பின்னணி*
*Petitioner*: _M/s R.R. Minerals_
*Impugned Orders*:
1. _Order-in-Original dt. 19.12.2025 – Sec 74 CGST Act 2017_
2. _Consequential GST DRC-07 – Demand Notice_

*Petitioner Case*:
1. _SCN வந்தது ஆனால் detailed reply file பண்ண முடியல_
2. _3 Personal Hearings-ல் 3-வது மட்டும் attend – DRC forms மட்டும் கொடுத்தோம்_
3. _Additional documents உள்ளன – ஒரு வாய்ப்பு கொடுங்க_

*3. Revenue வாதம்*
_“Sufficient opportunity கொடுத்தாச்சு. Reply file பண்ணல. 1st & 2nd hearing வரல. Documents தரல. Writ maintainable இல்ல”_

*4. High Court Findings – 4 காரணங்கள்*
1. *No Detailed Reply on Record*: _“Impugned order passed without benefit of detailed explanation or supporting evidence”_
2. *Tax Already Recovered*: _“Entire disputed tax amount already recovered” – No revenue loss if remand_
3. *Natural Justice*: _Audi alteram partem – Sec 75(4) CGST Act: Hearing mandatory before adverse order_
4. *Interest of Justice*: _“One final opportunity warranted” – Substantial justice > Procedural technicality_

*5. உத்தரவு – Operative Part*
1. *Order Set Aside*: _19.12.2025 Sec 74 Order ரத்து_
2. *Remand*: _Superintendent of CGST & Central Excise-க்கு மறு விசாரணைக்கு அனுப்பி வைப்பு_
3. *Timeline*: _Order receipt-ல் இருந்து 3 வாரத்தில் detailed reply + documents file பண்ணனும்_
4. *Fresh Hearing*: _Reply consider பண்ணி Personal Hearing கொடுத்து, law-படி புதிய order pass பண்ணனும்_

*6. சட்ட அடிப்படை – HJS*
**Provision** **Court Application**
**Sec 74 CGST Act** *Fraud/Suppression – 100% penalty. But Sec 75(4): “Opportunity of hearing shall be granted”*
**Sec 75(5)** *Adjournment max 3 times. Here 2 hearings missed, 3rd attended – Court still gave liberty*
**Art 226 + Natural Justice** *Violation of audi alteram partem = writ maintainable despite alternate remedy – *Whirlpool 1998 SC**
**M/s D.Y. Beathel 2021 SC** *GST orders without proper hearing liable to be set aside*
**Kranti Associates 2010 SC** *Quasi-judicial order must be reasoned + hearing based*
*7. முக்கியத்துவம் – GST Litigation*
1. *Sec 74 vs Sec 73*: _74 = Fraud case. Even then hearing mandatory. Dept can’t say “you missed chance”_
2. *DRC-07 Not Final*: _Recovery செய்தாலும் order bad in law என்றால் HC set aside பண்ணும்_
3. *Remand Power*: _HC can remand for fresh adjudication – Not substitute appellate authority_
4. *3-Week Rule*: _Standard time now for filing reply in GST remands – Mad HC trend 2025-26_

*8. Taxpayer Checklist – Remand Aftermath*
1. _3 வாரத்தில் point-wise reply to SCN_
2. _All invoices, e-way bills, GSTR-2A/2B reconciliation attach_
3. _Personal hearing-ல் CA/Advocate வைத்து argue_
4. _If adverse again → Sec 107 Appeal to Commissioner Appeals in 3 months_

*9. தொடர்புடைய தீர்ப்புகள்*
1. *M/s LC Infra Projects 2024 Mad HC*:
[27/06, 08:54] Meta AI: *Case #113: _M/s R.R. Minerals v Superintendent of CGST & Central Excise_ | WP(MD) | Madras HC Madurai Bench | 26.06.2026*
_Bench: Madurai Bench_. *GST + Sec 74 CGST Act + Natural Justice + Audi Alteram Partem + Remand*. *HJS Tax Law + Constitutional Law, UPSC GS-2 Governance + GS-3 Taxation*

*9. தொடர்புடைய தீர்ப்புகள்*
1. *M/s LC Infra Projects 2024 Mad HC*: _Sec 74 order set aside – no hearing given_
2. *Whirlpool Corp v Registrar 1998 SC*: _Writ despite alternate remedy if natural justice violated_
3. *Calcutta Discount Co. 1961 SC*: _Jurisdictional error + no hearing = HC interference_
4. *Radha Krishan Industries 2021 SC*: _GST provisional attachment – hearing must_

—

*Case #113 Final*: _M/s R.R. Minerals v Superintendent CGST – 26.06.2026 – Madurai Bench – Sec 74 GST Order set aside – No detailed reply on record, tax already recovered – Remand with 3 weeks to file reply + personal hearing – Natural justice + Sec 75(4) CGST Act – Audi alteram partem_

*Master Docket*: _113 Cases_
*Tag*: _Tax Law + GST + Sec 74 CGST Act + Natural Justice + Art 226 + Remand + Whirlpool + Personal Hearing_

*Next*: *1. “Sec 73 vs Sec 74 CGST – Difference in fraud vs non-fraud cases”* OR *2. “DRC-07 – GST demand & recovery procedure”* OR *3. “Whirlpool 1998 SC – Writ when alternate remedy exists”*?