2020 (8) TMI 622 - HC - GST

Principles of Natural Justice - opportunity for personal hearing not provided - petitioner contends that when there is a specific request from the petitioner to provide personal hearing, it is the duty of the 1st respondent to provide such a personal hearing - HELD THAT - The 1st respondent ought to have provided a personal hearing to the petitioner, since the petitioner requested for it specifically in its objections dt.18.02.2020 filed by it to the show cause notice issued on 31.01.2020 to it by the 1st respondent, and that failure of the 1st respondent to do so is a violation of principles of natural justice warranting setting aside of the impugned order. The matter is remitted back to the 1st respondent for fresh consideration - the 1st respondent shall provide a personal hearing to the petitioner; and then the 1st respondent shall pass a reasoned order in accordance with and communicate it to the petitioner - petition allowed by way of remand.

Summary

Issues: Violation of principles of natural justice by denying personal hearing to the petitioner in a tax assessment matter.

In this judgment by the Telangana High Court, the petitioner, a Private Limited Company engaged in construction and sale of flats and villas, was served with a notice by the 1st respondent regarding discrepancies in GST returns. The 1st respondent proposed a substantial tax levy, prompting the petitioner to file detailed objections seeking a personal hearing. However, despite the petitioner's request, the 1st respondent proceeded to pass the assessment order without providing the requested personal hearing. The petitioner argued that the denial of personal hearing violated principles of natural justice, citing relevant case laws emphasizing the importance of such hearings in tax assessment matters. The Special Counsel for Commercial Taxes did not dispute the legal principles raised by the petitioner.

The High Court, after considering the legal position and the petitioner's specific request for a personal hearing, held that the 1st respondent should have provided the petitioner with the opportunity for a personal hearing. The failure to do so was deemed a violation of natural justice, leading to the setting aside of the impugned assessment order. The matter was remitted back to the 1st respondent for fresh consideration, with a directive to provide the petitioner with a personal hearing. The 1st respondent was instructed to pass a reasoned order in accordance with the law and communicate it to the petitioner. The judgment concluded by allowing the writ petition, setting aside the assessment order, and closing any pending miscellaneous petitions without any order as to costs.