2024 (5) TMI 1314 - HC - GST

Violation of principles of natural justice - opportunity of personal hearing was not afforded to the petitioner - Section 75(4) of the Uttar Pradesh Goods and Services Tax Act 2017 - HELD THAT - The inclusion of or in Section 75(4) of the UPGST Act 2017 emphasizes the dual nature of the obligation to provide a personal hearing accommodating both proactive requests from individuals seeking to defend their interests and reactive responses to adverse orders contemplated by tax authorities. In either scenario the statutory mandate remains clear the individual must be afforded an opportunity for personal hearing before any final determination is made regarding tax or penalty imposition. Moreover the statutory mandate for personal hearing reflects an acknowledgement of the complex and multifaceted nature of tax and penalty determinations which often involve intricate legal and factual considerations. Personal hearing provides a forum for nuanced discussion and exploration of these complexities enabling decision-makers to make well-informed and equitable decisions based on a comprehensive understanding of the circumstances at hand. This Court in M/S SHREE SAI PALACE VERSUS STATE OF U.P. AND OTHERS 2024 (3) TMI 49 - ALLAHABAD HIGH COURT in similar facts and circumstances has held that no orders can be allowed to pass through the legislative barriers of natural justice erected to safeguard individual rights and prevent abuse of power and that the opportunity of hearing is required to be afforded to the petitioner before passing orders. Let there be a writ of certiorari issued against the order dated January 31 2024 and the order dated October 6 2021. These orders are quashed and set aside - Petition allowed.

Summary

Issues Involved:
The issue involves the requirement of providing a personal hearing u/s 75(4) of the Uttar Pradesh Goods and Services Tax Act, 2017 before passing orders related to tax imposition.

Summary:
The High Court of Allahabad, in a writ petition u/s Article 226 of the Constitution of India, addressed the grievance of the petitioner regarding an order passed by the Additional Commissioner, Grade - 2, State Tax, Etawah. The court noted that the petitioner was not afforded a personal hearing, which is mandatory u/s 75(4) of the Act. The court emphasized the significance of the word "or" in the statute, highlighting the dual scenarios where a personal hearing must be provided - either upon application by the individual or in the event of contemplation of an adverse order. The court stressed that personal hearing is essential for procedural fairness and natural justice, allowing individuals to present their case and respond to allegations. Referring to previous judgments, the court held that orders cannot bypass the principles of natural justice, and the opportunity of hearing must be given before passing orders.

In light of the above, the court issued a writ of certiorari against the orders in question, quashing them and directing the Assistant Commissioner, State Tax Sector-3, Fatehgrah to grant the petitioner a personal hearing and pass a reasoned order within six weeks. The writ petition was allowed, emphasizing the importance of providing a fair opportunity for personal hearing in tax-related matters.