GST Assessment Orders Set Aside for Lack of Personal Hearing; Matter Remanded

Issue: Whether the assessment orders passed under the GST Act are valid when the assessee was not granted a personal hearing, as required by the statute.

Facts:

Assessment orders were passed against the assessee under the GST Act.
The assessee claimed that they were not granted a personal hearing before the orders were passed.

Decision:

The court held that the assessment orders were passed in violation of the statutory mandate, which requires the assessing authority to provide a notice of personal hearing to the assessee.
The matter was remanded to the Assessing Officer with directions for the assessee to appear before the officer for a personal hearing.

Key Takeaways:

This case highlights the importance of adhering to the statutory requirement of granting a personal hearing to assessees before passing assessment orders under the GST Act.
Failure to provide a personal hearing can result in the setting aside of the assessment orders, as it violates the principles of natural justice.
The court’s decision to remand the matter ensures that the assessee is given a proper opportunity to be heard before the assessment is finalized.

HIGH COURT OF PATNA

Amitamshu Tradcon (P.) Ltd.

Union of India

K. Vinod Chandran, CJ.
and Partha Sarthy, J.

Civil Writ Jurisdiction Case Nos.13405 and 13825 of 2024

DECEMBER 19, 2024

D.V. Pathy, Adv. for the Petitioner. Dr. K.N. Singh, ASG, Vivek Prasad, GP-7, Ms. Roona and Sanjay Kumar, AC to GPs-7 for the Respondent.

JUDGMENT

K. Vinod Chandran, CJ. – The contentions raised in the present writ petitions 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 orders impugned have been passed without granting a personal hearing under Section 75(4) of the GST enactments, in which circumstance, the impugned orders and the orders in Form GST DRC-07 dated 30.10.2023 and 21.04.2024 (Annexure P-5 series) respectively, 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 after hearing the assessee shall 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 petitions stand disposed of with the above directions.