2024 (6) TMI 1031 - HC - GST

Violation of principles of natural justice - personal hearing was not offered after receipt of the petitioner's reply - breach of the mandatory requirement of sub-section (4) of Section 75 of TNGST Act - HELD THAT - The documents on record include the petitioner's reply on 20.06.2023 and a subsequent e-mail of 23.08.2023 along with the attachments thereto. Such reply was referred to in the impugned order and treated as a reply to the show cause notice. Although the petitioner is not blameless in as much as much as the petitioner did not reply to the intimation within a reasonable time or reply to the show cause notice, in view of breach of the mandatory requirement of sub-section (4) of Section 75, the impugned order calls for interference. The impugned order dated 09.10.2023 is quashed and the matter is remanded for reconsideration. The petitioner is permitted to submit any documents in support of the reply within a maximum period of two weeks from the date of receipt of a copy of this order. Petition disposed off.

Summary

Issues:
The assessment order challenged on the ground of lack of personal hearing post-reply. Interpretation of Section 75 of the Tamil Nadu Goods and Services Tax Act, 2017 regarding mandatory personal hearing and application of mind to defects in assessment.

Summary:
The petitioner contested an assessment order dated 09.10.2023, arguing that a personal hearing was not offered after the petitioner's reply. The petitioner received an intimation in Form GST DRC-01A on 22.12.2022, replied on 20.06.2023, and the assessment order was issued on 09.10.2023 after a show cause notice on 17.04.2023.

The petitioner's counsel relied on Section 75(4) of the Act, stating that a personal hearing is mandatory if requested or if an adverse order is proposed. He highlighted the lack of personal hearing post-reply and alleged non-application of mind, especially regarding a defect related to alleged supply from unregistered persons.

The Government Advocate acknowledged the multiple opportunities provided to the petitioner to contest the tax demand, including intimation, show cause notice, and post-notice personal hearing opportunities. The documents on record included the petitioner's reply and subsequent email, which were considered in the impugned order.

Due to the breach of the mandatory requirement of Section 75(4), the court quashed the assessment order dated 09.10.2023 and remanded the matter for reconsideration. The petitioner was allowed to submit supporting documents within two weeks, and the assessing officer was directed to provide a reasonable opportunity, including a personal hearing, and issue a fresh assessment order within two months.

The case was disposed of with no costs, and related motions were closed accordingly.