2025 (7) TMI 835 - HC - GST

Violation of principles of natural justice - order has been passed contrary to the Statute inasmuch as no opportunity of personal hearing has been provided to the petitioner - HELD THAT - The writ petition can be disposed of without entering into any disputed question on an entirely different ground. It is found that the provisions of Section 75(4) of the said Act makes it obligatory for the proper officer before passing any order or where any adverse decision is contemplated to afford an opportunity of hearing to the registered tax payer irrespective of the fact whether any request is received from the registered tax payer. Noting that in this case the show cause notice issued in Form GST DRC 01 dated 18th December 2024 for the tax period April 2018 to March 2019 did not provide for any time date or venue of personal hearing and the order impugned also recording that the tax payer had not prayed for any personal hearing and there is nothing on record to demonstrate that the petitioner had been afforded any opportunity of hearing and also noting the stand taken by the petitioner that the petitioner was not afforded with personal hearing without going into any other issue it would be prudent to remand the matter back to the proper officer for fresh adjudication on merits. While setting aside the order or the tax period Ap4ril 2018 to March 2019 passed under Section 73 of the said Act along with consequential demand raised in Form GST DRC 07 of even date the proper officer is directed to hear out and dispose of the proceeding afresh in accordance with law as expeditiously as possible preferably within a period of 6 weeks from the date of communication of this order. Petition disposed off by way of remand.

Summary

Calcutta High Court, in Writ Petition concerning GST demand under WBGST/CGST Act, 2017, held that the impugned order dated 29th April 2024 under Section 73(9) and the consequential demand in Form GST DRC-07 were passed "contrary to the Statute" as no opportunity of personal hearing was afforded to the petitioner. The Court emphasized that Section 75(4) mandates the proper officer to provide an opportunity of hearing before passing any order or adverse decision, regardless of whether the registered taxpayer requests it. Noting absence of any record showing personal hearing was granted and that the show cause notice lacked details of hearing, the Court set aside the order and demand for the tax period April 2018 to March 2019. The matter was remanded for fresh adjudication on merits, directing the proper officer to hear the petitioner and dispose of the proceedings expeditiously, preferably within six weeks. The writ petition was disposed accordingly without addressing other disputed issues.