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2021 (4) TMI 81 - HC - GSTPrinciples of Natural Justice - levy of tax and penalty imposed without opportunity of hearing provided - Cancellation of petitioner's registration due to non-filing of returns, which was rectified later and tax with late fee already paid - HELD THAT - On perusal of the contents of the notice issued by the third respondent, it is nowhere found in the said notice that personal hearing has been afforded to the petitioner herein. In the impugned order also, it is nowhere mentioned that such opportunity was afforded to the petitioner. The matter is remitted to the file of the third respondent to pass orders afresh in accordance with law - petition allowed by way of remand.
Issues:
Petitioner's registration cancellation due to non-filing of returns under TN VAT Act and GST regime, defects in returns, proposed tax on service charges and discount paid, lack of personal hearing in impugned order. Analysis: The petitioner's registration was canceled for non-filing of returns, rectified the defect, and remitted GST dues with late fee. Subsequently, the petitioner received a notice pointing out defects in returns, including sales and purchase omissions, proposing tax on service charges and discounts. No reply was submitted by the petitioner, leading to the impugned order levying tax and penalty. The writ petition challenges this order. The respondents argued that the writ petition is not maintainable under Section 107 of the Act, as per their detailed counter affidavit. However, the order in question must be quashed due to the absence of a personal hearing. Section 75(4) of the CGST Act mandates granting an opportunity of hearing upon request or when an adverse decision is contemplated against the person chargeable with tax or penalty. Upon review, it was found that the notice issued to the petitioner did not provide for a personal hearing, nor was it mentioned in the impugned order. Therefore, the order in the writ petition is quashed on the grounds of lack of personal hearing. The matter is remitted to the third respondent for fresh orders in compliance with the law. The writ petition is allowed without costs, and the connected miscellaneous petition is closed.
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