Date of Order: 22 August 2025
Parties: Raman Enterprises  v. Commissioner of SGST, Delhi & Anr.

Facts –

• SCN dated 25.09.2023 was issued; petitioner filed reply on 25.10.2023. No personal hearing was granted. Ex parte order dated 30.12.2023 raised a demand of ₹15.39 lakh.
• Petitioner filed rectification application on 27.03.2024, citing consultant dispute, but it was dismissed on 28.06.2024 without granting hearing.

Issue –

• Whether a rectification order rejecting assessee’s application without hearing is valid under Section 161 CGST Act?

Order –

• The division bench of the Hon’ble High court declined to entertain challenge to original demand order due to delay. However, quashed rectification order dated 28.06.2024 since it was passed mechanically and without hearing, violating the third proviso to Section 161.
• Any rectification order under Section 161 that adversely affects the assessee must provide a personal hearing; otherwise, it violates natural justice.
• Matter remanded for fresh rectification proceedings with due notice and personal hearing.