Providing an Opportunity for a Personal Hearing is mandatory before issuing of Order

[CA Bimal Jain]

The Hon’ble Madras High Court in the case of the A.H. Enterprises v. Deputy Commercial Tax Officer [2024 (1) TMI 284 - MADRAS HIGH COURT] held that it is mandatory to provide the personal hearing under Section 75 of the Tamil Nadu Goods and Service Tax Act, 2017 (“the TNGST Act”) before passing an Order. 

Facts:

A.H. Enterprises (“the Petitioner”) was called upon to pay a sum of INR 2,58,597/- towards the difference between returns filed in FORM GSTR-1 and FORM GSTR-3B including both interest and penalty vide Order dated October 11, 2023 (“Impugned Order”).

The Petitioner contended that the Impugned Order was issued without providing an opportunity of a personal hearing as mandated by Section 75 of the TNGST Act. 

The Depuy Commercial Tax Officer (“the Respondent”) contended that the demand raised in the Impugned Order is the difference between the returns filed in FORM GSTR-1 and FORM GSTR-3B along with interest and penalty and the matter may be remanded for reconsideration.

Hence, the petition was filed by the Petitioner to challenge the Impugned Notice.

Issue:

Whether it is mandatory to provide an opportunity for the personal hearing before the issuance of an Order by the Authority?

Held:

The Madras High Court in 2024 (1) TMI 284 - MADRAS HIGH COURT held as under:

• Held that, as per Section 75 of the TNGST Act, it is mandatory to provide the Personal Hearing to the Petition before the issuance of the Impugned Order. 
• Directed that, the Respondent provide a Personal Hearing to the Petitioner and thereafter issue a reasoned order within a maximum period of four weeks from the date of receipt of a copy of this order. Hence, the Impugned Order was quashed and remanded for reconsideration.

Author can be reached at [email protected])