2024 (5) TMI 1248 - HC - GST

Violation of principles of natural justice - order impugned was passed without giving the petitioners an opportunity of hearing as required under Section 75(4) of the said Act of 2017 - HELD THAT - Section 75(4) of the said Act mandates that an opportunity of hearing shall be given where a request is received in writing, to the person chargeable with tax or penalty or where any adverse decision is contemplated against such person. The petitioners, therefore, are entitled to an opportunity of such hearing, accordingly the order impugned is set aside. The respondent no.1 is directed to decide the show cause notice and the reply thereto afresh after giving the petitioners an opportunity of hearing. Petition diposed off.

Summary

Issues involved: Challenge to order u/s 74(9) of CGST Act, 2017 for tax, interest, and penalty without opportunity of hearing u/r 75(4).

Summary:
The High Court of Calcutta addressed a case where the Deputy Commissioner of State Tax Bureau of Investigation passed an order u/s 74(9) of the Central Goods and Services Tax Act, 2017 determining tax, interest, and penalty due from the petitioners. The petitioners contested the order, arguing that it was issued without providing them with a hearing as mandated by u/r 75(4) of the said Act. The State respondents claimed that the opportunity was offered but not utilized by the petitioners. However, the court held that as per u/r 75(4), an opportunity of hearing must be granted when an adverse decision is contemplated, and since the petitioners were not given this chance, the impugned order was set aside. The court directed the respondent to reconsider the matter after affording the petitioners a proper hearing. The case was disposed of without costs, and parties were allowed to obtain a certified copy of the order upon application.