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2024 (12) TMI 582 - HC - GSTChallenge to adjudication order - Violation of principles of natural justice - no opportunity of personal hearing was granted to the petitioner - HELD THAT - Considering the facts and circumstances of the present case and the provisions of Section 73 read with Section 75(4) of the WBGST/CGST Act 2017 this Court is of the view that proper officer is bound to afford an opportunity of hearing where either a request in writing is received by him from the person chargeable with tax or penalty or where any adverse decision is contemplated against such person. To afford opportunity of hearing is a statutory mandate which cannot be violated by proper officer and in the event such of violation the order passed by the proper officer cannot be sustained. Under the circumstances the impugned order dated 29th December 2023 passed by the proper officer for the period 2017-2018 cannot be sustained and deserves to be quashed and the matter deserves to be remanded to the concerned authority to pass an order afresh in accordance with law after affording reasonable opportunity of hearing to the petitioner. Petition disposed off by way of remand.
Issues:
Violation of opportunity of personal hearing under Section 75(4) of the WBGST/CGST Act, 2017. Analysis: The petitioner challenged a show cause notice issued by respondent no.4 in FORM GST DRC-01 for the Financial Year 2017-2018, which lacked a personal hearing opportunity as mandated by law. The adjudicating authority passed the adjudication order without granting any opportunity of hearing, contrary to the statutory requirement. The petitioner relied on a judgment of the Division Bench of the High Court, emphasizing the importance of affording an opportunity of hearing before concluding adjudication. The judgment cited Section 75(4) of the WBGST/CGST Act, 2017, which states that an opportunity of hearing must be granted where any adverse decision is contemplated against the person chargeable with tax or penalty. The Court held that the proper officer is obligated to afford an opportunity of hearing, whether requested in writing or when an adverse decision is anticipated, as per the statutory mandate of Section 75(4). The Court concluded that the impugned order passed without affording a hearing cannot be sustained and ordered the matter to be remanded for fresh adjudication after granting a reasonable opportunity of hearing to the petitioner. The judgment highlighted the importance of complying with the provisions of Section 75(4) of the WBGST/CGST Act, 2017, which necessitates granting an opportunity of hearing to the person chargeable with tax or penalty before passing any adverse decision. The Court emphasized that the statutory mandate of providing a hearing cannot be overlooked by the proper officer, and failure to do so renders the order unsustainable. The judgment reiterated that even if a request for a hearing is not explicitly made by the person concerned, it is the duty of the authority to ensure a fair hearing process before reaching a decision adverse to the individual. The Court's decision to quash the impugned order and remand the matter for fresh adjudication underscored the significance of upholding procedural fairness and statutory requirements in tax matters to safeguard the rights of the taxpayers. In conclusion, the High Court disposed of the writ petition, emphasizing that all parties must adhere to the server copy of the order downloaded from the official website of the Court. The judgment serves as a reminder of the importance of procedural fairness and adherence to statutory provisions, particularly regarding the right to a hearing before adverse decisions are made in tax matters.
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