2021 (4) TMI 874 - HC - GST

Principles of Natural Justice - opportunities given to the petitioner to produce his accounts for verification or not - HELD THAT - Considering the fact that though the petitioner was given a personal hearing, as it was the peak period of Covid-19 Pandamic, the petitioner was not able to appear before the authorities, necessarily, an opportunity of personal hearing should be given to the petitioner to explain his case and therefore, the impugned orders are liable to be set aside. The matter is remanded back to the respondent for fresh consideration after giving an opportunity of cross examination and personal hearing and to pass appropriate orders on merits and in accordance with law - Petition allowed by way of remand.

Summary

Issues:
Challenging orders of respondent in GST for financial years 2018-19 and 2019-20 due to lack of opportunity for explanation during assessment.

Analysis:
The petitioner, a partnership firm registered under the Indian Partnership Act, 1932, providing agency services, was assessed to tax under the Goods and Services Tax Act, 2017. The respondent, after inspecting the petitioner's business premises, issued show-cause notices for alleged defects and discrepancies for the financial years 2018-19 and 2019-20. The petitioner, citing the Covid-19 lockdown, sought adjournment and later submitted a detailed reply. However, the respondent proceeded to pass assessment orders without considering the petitioner's response, leading to the writ petitions seeking to quash these orders.

During the hearing, the petitioner's counsel argued that the petitioner was not given a proper opportunity to explain their case before the assessment orders were passed, emphasizing the need for a fair hearing. On the other hand, the Special Government Pleader contended that opportunities were provided for the petitioner to produce accounts for verification, which the petitioner failed to utilize, justifying the issuance of the impugned orders.

Upon review, the Court acknowledged the challenges faced by the petitioner during the peak of the Covid-19 pandemic, leading to the inability to appear before the authorities despite being granted a personal hearing. Consequently, the Court ruled in favor of the petitioner, setting aside the impugned orders and remanding the matter back to the respondent. The Court directed the respondent to provide a fresh opportunity for cross-examination and personal hearing to the petitioner before passing any new orders, emphasizing compliance with legal procedures and ensuring a fair assessment process within eight weeks from the date of the order. No costs were awarded, and the connected Miscellaneous Petitions were closed as a result of this judgment.