2024 (4) TMI 510 - HC - GST

Validity of assessment order of GST demand - Violation of principles of natural justice - opportunity of hearing was not provided to petitioner - no finished goods found in the petitioner s Factory on inspection - Admittedly notice in Form DRC-01 was issued after conducting an inspection based on the advertisement made by the petitioner in the Indiamart.com. The respondent has not identified any finished goods in the petitioner s premises as claimed by them. HELD THAT - Considering the fact that the officer who is present before this Court has confirmed that the personal hearing has not been provided to the petitioner after the notice in Form DRC-01 dated 29.09.2023 and taking into consideration of the fact that the reply of the petitioner Company dated 10.10.2023 was not considered by the respondent and also in view of the order passed by this Court as stated supra that the respondent ought to have provided an opportunity to the petitioner in the event of passing any adverse order and also in the absence of any finished goods identified in the petitioner s premises the orders impugned in these writ petitions are hereby set aside. The issue is remanded back to the respondent for fresh consideration. Petition allowed by way of remand.

Summary

Issues involved:
The assessment orders passed by the Assistant Commissioner challenged for assessment years 2017-2018 to 2021-2022.

Details of the judgment:
The petitioner, a manufacturer of knitted fabrics, challenged assessment orders claiming they only supplied knitted fabrics attracting 5% GST, not other finished products. Respondent conducted surprise inspection based on online marketing of other products. Petitioner submitted replies to notices but orders were passed without considering latest reply. Petitioner argued lack of personal hearing opportunity as per GST Act. Court noted previous ruling requiring personal hearing before adverse decision. Respondent argued all opportunities were provided. Court found discrepancy in not providing personal hearing after latest reply and set aside assessment orders. Issue remanded back for fresh consideration with personal hearing opportunity provided.

This judgment highlights the importance of providing a fair opportunity of personal hearing before passing adverse decisions under the GST Act, ensuring principles of natural justice are upheld in assessment proceedings.