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High Court grants writ petition, remands assessment order for violation of natural justice The High Court of Andhra Pradesh allowed the writ petition, setting aside the assessment order and remanding the matter to the Assessing Authority for ...
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High Court grants writ petition, remands assessment order for violation of natural justice
The High Court of Andhra Pradesh allowed the writ petition, setting aside the assessment order and remanding the matter to the Assessing Authority for reconsideration after finding a violation of principles of natural justice due to the failure to provide a personal hearing opportunity to the petitioner. The Court emphasized the importance of adhering to the provisions of the Central Goods and Services Tax Act, 2017 regarding granting an opportunity of hearing before taking adverse action, leading to the decision to quash the order and ensure a fair process for the petitioner.
Issues: Challenge to assessment order based on lack of personal hearing notice.
Analysis: The High Court of Andhra Pradesh heard the case concerning the challenge to an assessment order passed by the Assistant Commissioner (State Tax). The main issue was whether the order of assessment could be set aside due to the absence of a notice for a personal hearing before taking the impugned action. The petitioner argued that the failure to adhere to the mandatory provisions of sub-section (4) of Section 75 of the Central Goods and Services Tax Act, 2017 was fatal to the case of the respondents. On the other hand, the Government Pleader contended that since there was an alternative remedy of appeal under Section 107 of the CGST Act, the writ petition should be rejected.
The petitioner, a registered civil contractor undertaking government works in the Water Resources Department of the Government of Andhra Pradesh, received a notice and submitted a reply before the Assessing Authority passed the impugned order of assessment. The Court referred to Section 75 of the CGST Act, 2017, which requires granting an opportunity of hearing when a request is received in writing from the person chargeable with tax or penalty, or when any adverse decision is contemplated. Despite the petitioner submitting a reply, the Assessing Authority did not consider the objections raised and determined the liability as proposed in the show cause notice. The Court found that the Assessing Authority should have afforded an opportunity of hearing to the assessee as mandated under sub-section (4) of Section 75 of the CGST Act, 2017. The Court concluded that the failure to adhere to this provision and the violation of principles of natural justice warranted setting aside the impugned order and remanding the matter to the Assessing Authority for fresh consideration.
Therefore, the High Court allowed the writ petition, setting aside the order of assessment and remanding the matter to the Assessing Authority for reconsideration after providing an opportunity of hearing to the petitioner. The Court made no order as to costs of the writ petition, and any pending miscellaneous petitions in the matter were to be closed.
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