2021 (4) TMI 267 - HC - GST

Violation of principles of Natural Justice - opportunity extended to the petitioner prior to passing of the orders as the petitioner has not been heard in person - HELD THAT - Section 74(5) mandated a personal hearing to be granted in all matters prior to finalization of assessments. In light of the admitted position that the petitioner has not been granted a personal hearing prior to finalization of the impugned proceedings, the impugned orders in regard to the periods 2017-18 and 2018-19 are set aside. After hearing the petitioner and considering supporting evidences if any, filed by it, orders of assessment de novo shall be passed within a period of six (6) weeks from the date of personal hearing, in accordance with law - petition disposed off.

Summary

Issues Involved: Lack of opportunity for personal hearing prior to passing orders under the Tamil Nadu Goods and Services Tax Act, 2017.

Analysis:

1. Issue of Lack of Opportunity for Personal Hearing:
The judgment revolves around the challenge to orders passed under the Tamil Nadu Goods and Services Tax Act, 2017, specifically focusing on the lack of opportunity for the petitioner to be heard before the orders were finalized. The court notes that the petitioner was not granted a personal hearing, which is a crucial procedural requirement. Referring to a previous ruling in another case, the court emphasizes the necessity of personal hearings before finalizing assessments under Section 74(5). As a result of the admitted lack of personal hearing in this case, the court sets aside the impugned orders related to the periods 2017-18 and 2018-19.

2. Directions for Further Proceedings:
The judgment provides clear directions for the petitioner to appear before the State Tax Officer-1 on a specified date without further notice. The petitioner is instructed to present any supporting evidence during this personal hearing. Following the hearing, the State Tax Officer is required to pass orders of assessment de novo within six weeks from the date of the personal hearing, ensuring compliance with the law.

3. Disposition of the Writ Petition:
The judgment concludes by disposing of the writ petition in the terms outlined above. Additionally, it states that connected miscellaneous petitions are closed, and no costs are imposed in this matter. The decision ensures that the petitioner is granted the opportunity for a fair hearing and a fresh assessment process in line with the legal requirements.

In summary, the judgment addresses the fundamental issue of lack of personal hearing in the context of tax assessments under the Tamil Nadu Goods and Services Tax Act, 2017. By setting aside the impugned orders and providing specific directions for a new assessment process with the petitioner's participation, the court upholds the principles of natural justice and procedural fairness in administrative proceedings.