2023 (8) TMI 733 - HC - GST

Validity of assessment under Section 63 of the OGST Act - authority did not assign any reason and the order does not contain details of demand raised - opportunity of hearing not provided - HELD THAT - The Petitioner submitted that the Petitioner will not oppose to participate in the proceeding for assessment, if opportunity of hearing is given to him. The assessment order in Annexure-1 is set aside and the Petitioner may appear before the Assessing Officer on or before 31st May, 2023 and furnish objection, if any. The Assessing Officer shall proceed with the matter in accordance with law - petition disposed off.

Summary

Issues involved:
The issues involved in this case are the validity of an assessment order made under Section 63 of the OGST Act and the lack of opportunity of hearing provided to the petitioner before passing the said order.

Validity of Assessment Order under Section 63 of OGST Act:
The petitioner sought to quash the order dated 15th July, 2021 passed by the opposite party under Annexure-1, which made an assessment against the petitioner under Section 63 of the OGST Act. The petitioner argued that despite having a valid Registration Certificate with GSTIN, the assessing authority treated the petitioner as unregistered and initiated proceedings for assessment without serving any prior notice. The petitioner contended that the order lacked reasons and did not specify the details of the demand raised, depriving the petitioner of the opportunity to be heard.

Lack of Opportunity of Hearing:
The learned Addl. Standing Counsel for the Revenue Department acknowledged that the impugned order did not assign any reason and no opportunity of hearing was provided to the petitioner. It was conceded that the order, lacking reasons and opportunity of hearing, could not be sustained in the eyes of the law.

Court's Decision:
The Court set aside the assessment order in Annexure-1 and directed the petitioner to appear before the Assessing Officer on or before 31st May, 2023, to furnish any objections. The Assessing Officer was instructed to proceed with the matter in accordance with the law. The petitioner, through their counsel, expressed willingness to participate in the assessment proceedings if provided with an opportunity of hearing. Consequently, the writ petition was disposed of, and an urgent certified copy was ordered to be issued as per rules.