2025 (6) TMI 664 - HC - GST

Challenge to order passed under Section 74 of the WBGST/CGST Act 2017 - proper officer without affording the petitioner with an opportunity of hearing has decided on the show-cause - violation of principles of natural justice - HELD THAT - Noting the mandate of Section 75(4) of the said Act which obliges the proper officer to afford an opportunity of hearing to the petitioner since the show-cause contemplates passing an adverse order and such provision having not been complied with the aforesaid order dated 25th June 2024 passed under Section 74 of the said Act for the tax period of April 2018 to March 2021 cannot be sustained. The matter is remanded back to the proper officer for adjudication afresh. The proper officer is directed to here out the show-cause by giving the petitioner an opportunity to respond to the show-cause an opportunity of hearing and to decide the matter within a period of 16 weeks from the date of communication of this order. Petition disposed off by way of remand.

Summary

The Calcutta High Court, in a writ petition challenging the order dated 25th June 2024 passed under Section 74 of the WBGST/CGST Act, 2017 for the tax period April 2018 to March 2021, held that the order could not be sustained due to non-compliance with the mandatory requirement under Section 75(4) of the Act. The Court noted that the petitioner was not afforded an opportunity of personal hearing despite the show-cause notice (Form GST DRC 01) issued on 17th April 2024, and the respondents conceded this omission. Emphasizing the statutory mandate that a proper officer must provide an opportunity of hearing before passing an adverse order, the Court set aside the impugned order and remanded the matter for fresh adjudication. The proper officer was directed to hear the petitioner, allow a response to the show-cause, and decide the case within 16 weeks from communication of the order. Consequently, all consequential steps taken pursuant to the impugned order were quashed. The writ petition was disposed of accordingly.