2025 (6) TMI 1843 - HC - GST

Challenge to final order issued u/s 73 of the WBGST/CGST Act 2017 - service of SCN - right of the petitioner to be entitled to a personal hearing in consonance with the provisions of Section 75(4) of the said Act - HELD THAT - In the instant case a show-cause notice was duly served on the petitioner. The petitioner however did not avail the opportunity to file any response. However it is the mandate of Section 75(4) of the said Act which inter alia makes it obligatory for the proper officer before passing any order under Section 73 or Section 74 of the said Act to afford an opportunity of hearing if a request is made by a notice in writing for a personal hearing or if an adverse decision is contemplated against the tax payer. It is true that in the instant case no request was made in writing by the petitioner for personal hearing however considering the show cause and the fact that the an adverse order was contemplated against the petitioner the proper officer ought to have given the petitioner an opportunity of hearing prior to disposal of the proceeding under Section 73 of the said Act. It is inclined to set aside the order passed by the proper officer dated 28th May 2025 and to remand the matter back to the proper officer for a decision on merit - petition disposed off by way of remand.

Summary

The Calcutta High Court, in a writ petition challenging an order under Section 73 of the WBGST/CGST Act, 2017 for the tax period April 2022 to March 2023, held that the proper officer erred by not affording the petitioner a personal hearing prior to passing the order. Although the petitioner did not submit a written request for personal hearing under Section 75(4), the Court emphasized that "if an adverse decision is contemplated against the taxpayer," the officer is "obliged to afford an opportunity of hearing." Citing Greentech IT City (P) Ltd. v. State of West Bengal, the Court found the absence of personal hearing contrary to statutory mandate. Consequently, the Court set aside the order dated 28th May 2025 and remanded the matter for fresh disposal on merit, directing the proper officer to provide the petitioner a personal hearing but no further opportunity to file additional responses, while considering any documents submitted during the hearing. The writ petition was disposed accordingly.