Assessment Order Quashed; Personal Hearing Mandated Under Section 75(4)

Assessment Order Quashed; Personal Hearing Mandated Under Section 75(4)

Issue: Whether an assessment order passed without granting a mandatory personal hearing under Section 75(4) of the GST enactments is valid.

Facts:

• The assessee challenged an assessment order dated November 29, 2023, on the ground that it was passed without granting a mandatory personal hearing under Section 75(4) of the GST enactments.

Decision:

• The court held that an assessment order passed without granting the personal hearing mandated under Section 75(4) of the GST enactments cannot be sustained.
• The court set aside the impugned order.
• The court remitted the matter to the Assessing Officer with a direction to grant a personal hearing to the assessee on December 19, 2024.
• The court directed the Assessing Officer to pass fresh orders within three months from the date of the judgment or within the limitation period, whichever is later.
• The writ petition was disposed of.

Key Takeaways:

• Mandatory Personal Hearing: Section 75(4) mandates a personal hearing if requested by the assessee or if the authority intends to pass an adverse decision.
• Invalid Assessment Order: An assessment order passed without granting the mandatory personal hearing is invalid.
• Remittal for Fresh Assessment: When an assessment order is quashed for lack of a personal hearing, the matter is remitted to the Assessing Officer for a fresh assessment after granting the hearing.
• Compliance with Section 75(4): Assessing Officers must comply with the provisions of Section 75(4) and grant a personal hearing when required.
• Section 75 of Central Goods and Services Tax Act, 2017/Bihar Goods and Services Tax Act, 2017: This section deals with general provisions relating to determination of tax.
• The court is reinforcing the need to comply with the statutory requirements for personal hearing, and ensuring due process.