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2023 (10) TMI 1328 - HC - GSTDenial of opportunity of hearing - notice in the proceedings issued to the petitioner on 12.07.2021 seeking his reply within 30 days - HELD THAT - There is complete agreement with the view taken by the coordinate bench in Bharat Mint Allied Chemicals 2022 (3) TMI 492 - ALLAHABAD HIGH COURT . Once it has been laid down by way of a principle of law that a person/assessee is not required to request for opportunity of personal hearing and it remained mandatory upon the Assessing Authority to afford such opportunity before passing an adverse order, the fact that the petitioner may have signified 'No' in the column meant to mark the assessee's choice to avail personal hearing, would bear no legal consequence. The impugned order itself has been passed on 14.09.2021. The stand of the assessee may remain unclear unless minimal opportunity of hearing is first granted. Only thereafter, the explanation furnished may be rejected and demand created - Not only such opportunity would ensure observance of rules of natural of justice but it would allow the authority to pass appropriate and reasoned order as may serve the interest of justice and allow a better appreciation to arise at the next/appeal stage, if required. The matter is remitted to the respondent no.3/Assistant Commissioner, State Tax, Sector-6, Varansi to issue a fresh notice to the petitioner within a period of two weeks from today - Petition allowed by way of remand.
Issues:
Challenge to the order passed by the Assistant Commissioner for the tax period 2018-19 due to denial of opportunity of oral hearing to the petitioner. Judgment Details: The petitioner raised a challenge against the order passed by the Assistant Commissioner, State Tax, Sector-6, Varanasi for the tax period 2018-19, claiming that he was completely denied the opportunity of oral hearing before the Assessing Authority. The petitioner argued that as per Section 75(4) of the U.P. GST Act, 2017, the Assessing Authority was obligated to provide an opportunity of personal hearing before passing an adverse assessment order. The petitioner relied on a decision of a coordinate bench of the Court and a decision of the Gujarat High Court to support his claim. The revenue contended that the petitioner was denied the opportunity of hearing because he had declined the option for personal hearing in the reply to the show-cause-notice submitted online. The revenue argued that since the petitioner had declined the opportunity of hearing, he could not now claim any error in the impugned order. After hearing both parties and examining the record, the Court found that as per Section 75(4) of the Act, an opportunity of hearing must be granted where any adverse decision is contemplated against the person chargeable with tax. The Court agreed with the view taken by a coordinate bench that the Assessing Authority must afford the opportunity of personal hearing before passing an adverse order, regardless of whether the assessee had declined the option for personal hearing. The Court emphasized that in cases involving heavy civil liability, providing even minimal opportunity of hearing is essential to ensure the principles of natural justice are upheld. Granting such an opportunity not only ensures the observance of natural justice rules but also allows for the authority to pass a reasoned order that serves the interest of justice and facilitates a better understanding at subsequent stages. Consequently, the Court allowed the writ petition, set aside the impugned order, and remitted the matter back to the Assistant Commissioner to issue a fresh notice to the petitioner within two weeks, ensuring the petitioner's right to a fair hearing and expeditious conclusion of the proceedings.
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