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2024 (2) TMI 1124 - HC - GSTViolation of principles of natural justice - personal hearing was not provided to the petitioner - HELD THAT - Section 75(4) of the Tamil Nadu State Goods and Services Tax Act, 2017 mandates that a personal hearing be given either if such hearing is requested for or if an order adverse to the assessee is proposed to be issued. In the case at hand, by reply dated 24.10.2023, the petitioner expressly requested for a personal hearing. Such personal hearing was not granted. As pointed out by learned counsel for the petitioner, several findings were recorded in the impugned assessment order on the ground that the petitioner did not provide supporting documents. The matter is remanded for reconsideration. The assessing officer is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, take into account documents produced by the petitioner and, thereafter, issue a fresh assessment order - Petition disposed off by way of remand.
Issues involved:
The petitioner challenges an order dated 29.12.2023, primarily on the ground of lack of personal hearing. Details of the Judgment: Issue 1: Lack of Personal Hearing The petitioner, a construction equipment manufacturer and a registered person under GST laws, received a show cause notice dated 29.09.2023 following an audit of their books of accounts under applicable GST laws. The petitioner replied to the notice on 24.10.2023 and requested a personal hearing. However, the impugned order was issued on 29.12.2023 without providing the requested personal hearing. The petitioner's counsel argued that the failure to offer a personal hearing severely prejudiced the petitioner. For instance, in response to the show cause notice regarding trade payables, the petitioner had clearly stated that no payments for supplies were made beyond 180 days, supported by a trade payables ageing report. Despite this, the assessment order confirmed a tax demand of approximately Rs.5.7 crores citing the petitioner's failure to produce payment details and other documents. The counsel contended that if a personal hearing had been granted, such a significant tax demand would not have been confirmed. Issue 2: Compliance with Document Submission The Government Advocate representing the respondents argued that the assessment order was issued because the petitioner did not provide all necessary documents, which could have been attached to the petitioner's reply dated 24.10.2023. Judgment Section 75(4) of the Tamil Nadu State Goods and Services Tax Act, 2017 mandates a personal hearing either upon request or if an adverse order is proposed. As the petitioner had explicitly requested a personal hearing in their reply dated 24.10.2023, and several findings in the assessment order were based on the petitioner's alleged failure to provide supporting documents, the court found grounds for interference. Consequently, the impugned order dated 29.12.2023 was quashed, and the matter was remanded for reconsideration. The assessing officer was directed to afford a reasonable opportunity to the petitioner, including a personal hearing, consider the documents submitted, and then issue a fresh assessment order within two months. The writ petition was disposed of with no order as to costs, and connected miscellaneous petitions were closed.
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