2024 (4) TMI 1157 - HC - GST

Challenge to assessment order on the ground of breach of principles of natural justice - petitioner's reply and the documents annexed thereto were not taken into consideration while issuing the impugned order - HELD THAT - On perusal of the impugned order, it is clear that all three reminders were prior to the petitioner's reply dated 22.08.2023. The said reply is on record and the petitioner has annexed several documents thereto. In the impugned order, the respondent has not duly examined such reply especially the documents annexed thereto. Besides, as contended by learned counsel for the petitioner, no personal hearing was not provided and the failure to do so contravenes sub-section 4 of Section 75 of the applicable GST enactments. Hence, the impugned order is not sustainable. Tthe impugned order dated 22.09.2023 is set aside and the matter is remanded to the respondent for reconsideration. Upon providing a reasonable opportunity to the petitioner, including a personal hearing, the respondent is directed to issue a fresh order within two months from the date of receipt of a copy of this order. Petition disposed off.

Summary

Issues: Challenge to assessment order based on breach of natural justice principles

Analysis:
The judgment revolves around a writ petition challenging an assessment order dated 22.09.2023 on the grounds of breach of principles of natural justice. The petitioner had responded to a show cause notice dated 04.03.2023 by submitting various documents, including bank reconciliation statements and a Chartered Accountant's Certificate, on 22.08.2023. However, the impugned order was issued without taking into account the petitioner's reply and the annexed documents. The petitioner's counsel argued that the lack of consideration of the reply and the absence of a personal hearing violated the provisions of sub-section 4 of Section 75 of the relevant GST enactments.

The Government Advocate representing the respondent contended that three reminders were issued post the show cause notice, indicating compliance with principles of natural justice. However, upon examining the impugned order, it was evident that all three reminders were issued before the petitioner's reply on 22.08.2023. The respondent had failed to adequately examine the petitioner's reply and the attached documents in the impugned order. Moreover, the absence of a personal hearing further violated the statutory requirement under sub-section 4 of Section 75 of the applicable GST enactments. Consequently, the court held the impugned order as unsustainable.

As a result of the above findings, the High Court set aside the impugned order dated 22.09.2023 and remanded the matter back to the respondent for reconsideration. The respondent was directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh order within two months from the date of receipt of the court's order. The writ petition was thus disposed of with no costs imposed on either party.