GST Demand Order Set Aside for Lack of Personal Hearing: Matter Remanded for Fresh Order
Summary in Key Points:
- Issue: The assessee challenged a demand order (Form DRC-07) issued under the GST Act, claiming that they were not granted a personal hearing as required by Section 75(4).
- Decision: The High Court set aside the demand order due to the violation of the statutory mandate for a personal hearing. The matter was remanded to the assessing officer with directions to provide the assessee an opportunity for a hearing before issuing a fresh order.
- Reasoning:
- Section 75(4) of the CGST Act mandates a personal hearing when an adverse decision is contemplated against a taxpayer.
- Denying the assessee a personal hearing violates their right to be heard and present their case before a decision is made.
HIGH COURT OF PATNA
Raymond Lifestyle Ltd.
v.
Union of India
K. Vinod Chandran, CJ.
and Partha Sarthy, J.
and Partha Sarthy, J.
Civil Writ Jurisdiction Case No.11543 of 2024
DECEMBER 18, 2024
D.V. Pathy, Adv., for the Petitioner. Dr. K.N. Singh, ASG, ANSHUMAN SINGH, Sr. SC, CGST & CX and Vivek Prasad, GP, for the Respondent.
JUDGMENT
K. Vinod Chandran, CJ.- The contentions raised in the present writ petition on limitation are answered in C.W.J.C. No. 4180 of 2024 and analogous cases, M/s Barhonia Engicon Private Limited v. The Union of India and Ors. vide judgment dated 27.11.2024, against the petitioner.
2. It is submitted on behalf of the petitioner that the assessment order impugned has been passed without granting a personal hearing under Section 75(4) of the GST enactments, in which circumstance, the impugned order and the order in Form GST DRC-07 dated 30.04.2024 (Annexure-P3 series), are set aside on violation of the statutory mandate for notice of personal hearing and the matter is remitted to the Assessing Officer directing the assessee to appear before the Assessing Officer on 15.01.2025. If he appears on the date notified, or on a date once adjourned, the Assessing Officer shall after hearing the assessee pass orders within three months from the date of this judgment or within the limitation period provided, if not expired, whichever falls later.
3. The writ petition stands disposed of with the above directions.