2024 (4) TMI 276 - HC - GST

Validity of assessment order - no personal hearing was provided after the petitioner replied to such show cause notice and prior to the issuance of the assessment order - violation of principles of natural justice - HELD THAT - On examining the show cause notice and the reply thereto, it is evident that the petitioner did not raise the issue relating to exemption of goods dealt with by the petitioner before the assessing officer. The assessing officer also did not take note of either Notification No.1 or Notification No.2. The impugned assessment order was issued in those facts and circumstances. While the petitioner was offered a personal hearing under show cause notice dated 14.10.2023, no personal hearing was provided after the petitioner replied to such show cause notice and prior to the issuance of the assessment order. Upon taking into account the above facts and circumstances, especially the fact that the relevant Notifications were not taken into consideration while issuing the impugned assessment order, impugned assessment order calls for interference. The impugned assessment order dated 12.12.2023 is quashed and the matter is remanded for reconsideration. The assessing officer is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh assessment order within a period of two months from the date of receipt of a copy of this order. The writ petition is disposed off.

Issues Involved: Challenge to assessment order dated 12.12.2023 by an Agricultural Producers Co-operative Marketing Society regarding tax liability on goods dealt with in their market place under GST regime.

Summary:
The petitioner, an Agricultural Producers Co-operative Marketing Society, challenged an assessment order dated 12.12.2023, claiming they are not engaged in any supply and thus not liable for tax. The petitioner contended that the goods dealt with on their market place are exempted goods under Notification No.2/2017-Central Tax (Rate) dated 28.06.2017, which was not referred to in their initial reply. The petitioner argued that GST authorities were obligated to examine whether the relevant goods are exempted during assessment, citing legal precedents to support their stance.

The respondent, represented by Mrs. K. Vasanthamala, argued that the goods dealt with by the petitioner are not fully exempt from GST, pointing out specific items and applicable tax rates under Notification No.1/2017-Central Tax (Rate). The respondent also highlighted that a personal hearing was offered to the petitioner under the show cause notice.

The Court noted that the petitioner did not raise the issue of goods exemption before the assessing officer, who also did not consider the relevant notifications. Due to this oversight and the lack of a personal hearing post-reply, the Court concluded that the assessment order required interference. Consequently, the assessment order dated 12.12.2023 was quashed, and the matter was remanded for reconsideration with directions for a fresh assessment order to be issued within two months, including a personal hearing for the petitioner.

In conclusion, the writ petition was disposed of with no costs, and connected miscellaneous petitions were closed.

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