2024 (7) TMI 798 - HC - GST

Violation of principles of natural justice - out of three notices issued, the second notice was issued without mentioning time or date for personal hearing - HELD THAT - Considering the fact that Rs. 38 lakhs appears to have been recovered from and out of the petitioner's account, the Court is inclined to set aside the impugned order and remit back the case to the respondent to pass fresh orders on merits and in accordance with law within a period of 60 days from the date of receipt of a copy of this order. The impugned order, which stands quashed, shall be treated as addendum to the show cause notice that preceded the impugned order - Petition disposed off.

Summary

Issues involved: Challenge to impugned order for assessment year 2018-19, violation under GST enactments regarding notices for personal hearing, recovery of amount by respondent, request for fresh personal hearing, availability of alternative remedy before Appellate Commissioner, setting aside impugned order, remitting the case for fresh orders, liberty to give additional representation, timeline for personal hearing and passing final orders.

Analysis:

1. Challenge to Impugned Order: The petitioner challenged the impugned order dated 03.04.2023 for the assessment year 2018-19, referencing GSTIN:33AISPM0239K1Z1. The petitioner responded to the notices in ASMT 10 and GST DRC 01, raising objections against the assessment.

2. Violation under GST Enactments: The petitioner contended that the second notice for personal hearing was issued without specifying the time or date, alleging a violation under the GST enactments. This issue was raised to highlight procedural irregularities in the assessment process.

3. Recovery of Amount: The respondent had recovered nearly Rs. 38 lakhs out of the total demand towards SGST and CGST. This significant recovery was mentioned to emphasize the financial implications of the assessment on the petitioner.

4. Request for Fresh Personal Hearing: The petitioner requested an opportunity for a fresh personal hearing to present their case on merits before the respondent. This request was made to ensure a fair opportunity for the petitioner to address the issues raised in the assessment.

5. Alternative Remedy Before Appellate Commissioner: The respondent argued that the writ petition lacked merits and suggested that the petitioner could seek redressal before the Appellate Commissioner under Section 107 of the GST enactments. This alternative remedy was highlighted as a legal recourse available to the petitioner.

6. Setting Aside Impugned Order: After considering arguments from both parties and noting the recovery made from the petitioner's account, the Court decided to set aside the impugned order. The case was remitted back to the respondent for fresh orders to be passed within 60 days in accordance with the law.

7. Liberty to Give Additional Representation: The petitioner was granted liberty to provide additional representation if needed. This provision allowed the petitioner to further present their case or address any new developments that may arise during the proceedings.

8. Timeline for Personal Hearing and Final Orders: Specific timelines were set for the final personal hearing and passing of orders. The final personal hearing was scheduled to be held on or before 29.07.2024, with the final orders to be issued by 30.08.2024, ensuring a structured and timely resolution of the case.