2024 (4) TMI 518 - HC - GST

Violation of principles of natural justice - opportunity of personal hearing was not afforded to the petitioner which is a mandatory requirement under Section 75(4) of the Uttar Pradesh Goods and Services Tax, Act, 2017 - HELD THAT - This Court in M/s Shree Sai Palace v. State of U.P. and Another 2024 (3) TMI 49 - ALLAHABAD HIGH COURT , relying on two judgments of coordinate Bench of this Court in Bharat Mint and Allied Chemicals v. Commissioner Commercial Tax and Others 2022 (3) TMI 492 - ALLAHABAD HIGH COURT and M/s Primeone Work Force Pvt. Ltd. v. Union of India, 2024 (1) TMI 625 - ALLAHABAD HIGH COURT , in similar facts and circumstances has held that no orders can be allowed to pass through the legislative barriers of natural justice erected to safeguard individual rights and prevent abuse of power and that the opportunity of hearing is required to be afforded to the petitioner before passing orders. Let there be a writ of certiorari issued against the order dated July 12, 2023 and the order dated August 18, 2022. These orders are quashed and set aside. Consequential relief to follow. The respondent No. 3 is directed to grant an opportunity of personal hearing to the petitioner and thereafter pass a reasoned order in accordance with the law within a period of six weeks from date. The writ petition is allowed.

Summary

Issues involved:
The issue involves the petitioner being aggrieved by the order passed by the Additional Commissioner, Grade 2, (Appeals), Judicial Division, State Tax, Mainpuri for not affording an opportunity of personal hearing as mandated under Section 75(4) of the Uttar Pradesh Goods and Services Tax Act, 2017.

Summary:

Opportunity of Personal Hearing:
The Court emphasized the mandatory requirement of providing an opportunity of personal hearing as per Section 75(4) of the Act. The word "or" in the section indicates two distinct scenarios where personal hearing must be given: either upon application by the individual subject to penalty or tax imposition, or in the event of contemplation of an adverse order. Personal hearing is crucial for procedural fairness and natural justice, allowing individuals to present their case, respond to allegations, and address concerns directly to the decision-maker. It acts as a safeguard against arbitrary decisions. The Court referred to previous judgments to support the necessity of affording a personal hearing before passing orders.

Judgment:
In consideration of the above, a writ of certiorari was issued against the orders dated July 12, 2023, and August 18, 2022. These orders were quashed, and consequential relief was directed to follow. The respondent No. 3 was instructed to grant the petitioner an opportunity of personal hearing and subsequently pass a reasoned order within six weeks. The petitioner was cautioned against seeking adjournments, with the respondent having the liberty to proceed in accordance with the law if adjournments were requested. The writ petition was allowed accordingly.