2025 (2) TMI 994 - HC - GST

Violation of principles of natural justice - no opportunity of hearing as contemplated by Section 75(4) of the GST Act 2017 has been granted - HELD THAT - A perusal of the notices the screen shot of the portal dated 03.08.2023 as well as the show cause notice all indicate that the matter was never fixed for hearing. The issue has already been considered by this Court in Kloud Data Labs (P.) Ltd. Vs. Deputy Commissioner of State Tax 2024 (8) TMI 770 - BOMBAY HIGH COURT in which it has been held that even if no reply has been filed however that does not permit the authorities from doing away with the mandate of Section 75(4) of the GST Act 2017. Though the impugned order indicates that on 02.12.2021 nobody attended however as indicated above the notices do not indicate fixing of any date or time for the purpose of hearing. In that view of the matter the order dated 06.04.2022 is quashed and the matter remanded back to the Respondents to grant an opportunity of hearing to the Petitioner as contemplated by Section 75(4) of the GST Act 2017. Petition allowed by way of remand.

Summary

The Bombay High Court considered a petition challenging a tax liability imposed on the petitioner under the Maharashtra Goods and Services Tax Act, 2017. The petitioner argued that they were not granted an opportunity of hearing as required by the GST Act. The court noted that previous notices did not fix a date for a hearing and referenced a prior case holding that authorities cannot ignore the hearing requirement even if no reply is filed. Consequently, the court quashed the order and directed the matter to be remitted back to the respondents for a proper hearing in compliance with the law. The petitioner was instructed to appear before the respondents on a specified date for further proceedings. The petition was allowed with no costs awarded.