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TMI Blog2024 (1) TMI 1208X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner and also without providing an opportunity of hearing to the petitioner - violation of principles of natural justice - HELD THAT:- In the instant case whether or not the petitioners have specifically asked for personal hearing, fact remains that the adverse decision was contemplated against the petitioners. In that event, it was obligatory and mandatory on the part of respondents to provide the petitioners opportunity of personal hearing. Admittedly, no opportunity of personal hearing has been provided in both the matters. Resultantly, the decision making process adopted by the respondents is vitiated and runs contrary to the principles of natural justice and statutory requirement of sub-section 4 of Section 75 of GST Act. As a res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Deputy Commissioner of State Tax, Division - I, Indore by which a demand for excess Input Tax Credit (hereinafter referred to as 'ITC) has been raised amounting to Rs. 78,49,607/- (1.29,600/- CGST, 1,29,600/- MPGST, 75,90,407/-under IGST head) along with imposition of interest and equivalent penalty under Section 74 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as 'CGST Act') and Madhya Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as 'MPGST Act') as made applicable to the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as "IGST Act") vide Section 20 of the said IGST Act, 2017 on the ground that the said order has been passed without considering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed against the Assessee. The relevant provision is as under: "75. General provisions relating to determination of tax.. (4) An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person." (VI) That as per the provisions of sub-section (4) of Section 75 of the CGST Act/WBGST Act no adverse order shall be passed against your Petitioner without providing the opportunity of hearing. However, it is clearly evident that in the present case of your Petitioner the impugned order was passed without providing an opportunity of being heard and that same is against the settled principles of the lega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustice and statutory mandate mentioned in Sub Section 4 of Section 75 of the Act are grossly violated. (II) In support of his submission, learned counsel for the petitioners placed reliance on the judgment of this Court reported in (2023) 4 Centax 198 (M.P.) (19.01.2023) (Ultratech Cement Ltd. Vs. Union of India), the judgment of Gujarat High Court reported in 2022 (66) G.S.T.L. 38 (Guj.) (23.06.2022) (Graziano Trasmissioni India Pvt. Ltd. Vs. State of Gujarat) and lastly on a Division Bench judgment of Allahabad High Court reported in 2023 (8) TMI 1091, Allahabad High Court, (M/s. BL Pahariya Medical Store Vs. State of U.P. And another). 5. Per contra, learned counsel for the State submits that petitioners have not projected requirement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty has to form an opinion on a question, it does not mean that it has to be formed in a subjective or casual manner. That opinion must be formed objectively on relevant considerations. Same is the position in respect of the exercise of discretion. The framers of the Act require such Appellate authority to exercise its discretion in a reasonable and rational manner taking into consideration the relevant facts and circumstances of a particular appeal while considering the question as to whether the deposit of the amount of the penalty be dispensed with unconditionally or subject to the conditions". 6. We have heard learned counsel for the parties at length and perused the relevant documents. 7. Before dealing with rival contentions, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the argument of learned Government Advocate for the State whether the expression 'opportunity of hearing' is fulfilled if reply to show cause notice is received. We find substance in the arguments of learned counsel for the petitioners that even law makers while prescribing the statutory form has visualized different stages for the purpose of 'personal hearing'. The one stage is when the reply is submitted and the other stage is date, venue and time of the personal hearing. Thus, we are unable to persuade ourselves with the line of argument of learned Government Advocate that 'opportunity of hearing' does not include the opportunity of 'personal hearing'. 12. In the instant case whether or not the petitioners have specifically asked fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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