2023 (1) TMI 1027 - HC - GST

Validity of impugned order passed without granting personal hearing - breach of principles of natural justice (audi alterem partem) - non-application of mind - HELD THAT - From perusal of the impugned order dated 23/09/2022, it can be seen that it is one of those blatant cases of breach of principles of natural justice and total non-application of mind. The only reason assigned in the impugned order is that the reply filed by the petitioner is not acceptable and no tax has been deposited by the petitioner, therefore, the reply is rejected. Admittedly, as per Section 75(4) of the Act, personal hearing is mandatory before passing any adverse order against the assessee. In the circumstances, there are no reason why to wait for the respondents to file the reply and prolong the agony of the petitioner and also waste precious judicial time. If the Assessing Officer had only considered the file properly and dealt with the reply filed by the petitioner, then the need for the petitioner to approach this Court would not haven arisen. The order is set aside - petition disposed off.

Summary

Issues involved:
Violation of principles of natural justice by not granting personal hearing before passing an adverse order.

Detailed Analysis:
The petitioner challenged an Assessment order passed without granting personal hearing, contending a violation of Section 75(4) of the Central Goods & Service Tax Act, which mandates an opportunity of being heard before any adverse decision. The respondents sought a chance to file a reply. The court observed the impugned order as a clear breach of natural justice and lack of application of mind, solely rejecting the petitioner's reply without proper consideration. Emphasizing the mandatory nature of personal hearing under Section 75(4), the court quashed the order and directed a different Assessing Officer to consider the reply, provide a hearing, and pass a new order within eight weeks.

This judgment highlights the significance of adhering to principles of natural justice, particularly the right to a fair hearing before any adverse decision. It underscores the duty of authorities to thoroughly consider submissions and afford due process to parties involved. The court's intervention in setting aside the order underscores the importance of upholding procedural fairness in administrative actions, ensuring justice and preventing arbitrary exercise of power. The directive for a fresh assessment by a different officer underscores the court's commitment to rectifying procedural lapses and upholding the rule of law in tax matters.