Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases GST GST + HC GST - 2024 (1) TMI HC This

  • Login
  • Cases Cited
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2024 (1) TMI 1208 - HC - GST


Issues involved: Violation of principles of natural justice in passing an order under Section 74 of the CGST Act/MPGST Act without considering petitioner's submissions or providing an opportunity of hearing.

Summary of Judgment:

Issue 1: Violation of Principles of Natural Justice

The petitioner challenged an adjudication order under Article 226 of the Constitution, where a demand for excess Input Tax Credit (ITC) was raised without considering the petitioner's submissions or providing a hearing. The order was passed under Section 74 of the CGST Act/MPGST Act, which mandates considering the representation made by the assessee before determining tax, interest, and penalty. The petitioner argued that the order disregarded the principles of natural justice by not providing an opportunity of being heard, as required by Section 75(4) of the Acts. The court noted that the provision mandates granting an opportunity of hearing where an adverse decision is contemplated, regardless of a specific request for a personal hearing. The court emphasized that the word 'or' in the statute indicates that hearing must be granted even if no specific request is made but an adverse decision is anticipated. The court held that the absence of a personal hearing in the present case violated the principles of natural justice and statutory requirements, setting aside the proceedings and directing a re-hearing by a different officer.

Conclusion

The court found that the impugned proceedings were flawed as they did not provide the petitioner with an opportunity of personal hearing despite an adverse decision being contemplated. The court set aside the proceedings and directed a re-hearing by a different officer, emphasizing the importance of adhering to principles of natural justice and statutory requirements in such cases. The court clarified that its decision did not express any opinion on the merits of the case, disposing of both writ petitions accordingly.

 

 

 

 

Quick Updates:Latest Updates