9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (7) TMI 752 - HC - GSTDetermination of GST amount alongwith interest and penalty - opportunity of personal hearing, as contemplated under Section 75(4) of the CGST Act, 2017, not allowed - violation of principles of natural justice - HELD THAT - Section 75(4) of the CGST Act, 2017 provides that an opportunity of hearing is to be provided where a request is received in writing from the person chargeable with tax or penalty or where any adverse decision is contemplated against such person. The stand on the part of the Department is that the Online Portal mode was chosen by the petitioners, which had resulted in the entire matter having been proceeded Online. The opportunity of hearing was not granted since the same was not requested for. However, while so arguing, the provision of Section 75(4) has been missed out. Even without any request having been made on the part of the party concerned, when any adverse decision is contemplated, personal hearing is a must. Hence, the same is missing in the instant case and the request on the part of the petitioners is to remand the matter by directing the respondents to consider the matter afresh by giving the fullest opportunity to the parties to present their case. Without entering into the merits of the matter, only on the ground of non-availment of opportunity of personal hearing, it is deemed appropriate to quash the impugned Order-in- original and two (2) Summary Orders in Form DRC-07 passed by respondent No.3. The respondent No.3 shall avail the opportunity of personal hearing on 18.07.2022 - petition disposed off.
Issues:
Challenging legality and validity of Order-in-original, violation of GST Acts and Rules, lack of opportunity for personal hearing. Analysis: The petitions sought to challenge the legality and validity of an Order-in-original dated 25.03.2022 and 2 Summary Orders passed by respondent No.3, alleging violations of the Central Goods and Services Tax Act, 2017, Central Goods and Services Tax Rules, 2017, Gujarat Goods and Services Tax Act, 2017, and Gujarat Goods and Services Tax Rules, 2017, as well as principles of natural justice. The petitioner, a unit manufacturing automobile components, exported goods under Letter of Undertaking without payment of GST, inadvertently misreporting export turnover in a GST return. Respondent No.3 raised queries, to which the petitioner responded, clarifying the error. Subsequently, respondent No.3 issued a demand notice for ITC along with interest and penalty, leading to the issuance of a show-cause notice and eventual passing of the impugned order without affording a personal hearing, as required by Section 75(4) of the CGST Act, 2017. The High Court, after hearing both sides, noted that Section 75(4) mandates granting an opportunity of hearing when an adverse decision is contemplated, regardless of a formal request. The Department argued that since the proceedings were online and no hearing was requested, it was not necessary. However, the Court emphasized that personal hearing is essential in such cases. Consequently, solely due to the lack of a personal hearing, the Court quashed the impugned order and directed respondent No.3 to provide a personal hearing on 18.07.2022, allowing document submission by 13.07.2022. The Court stressed no adjournments should be sought, and this decision does not prejudice the final outcome. Both petitions were disposed of accordingly, with direct service permitted.
|
