2023 (3) TMI 873 - HC - GST

High Court Upholds Taxpayer Rights, Quashes GST Assessment Order for Procedural Impropriety Under Section 75(4)

HC allowed the writ petition challenging the GST assessment order for 2017-18, finding a violation of natural justice due to lack of personal hearing. The ... Violation of principles of natural justice - petitioner was not granted personal hearing in the impugned assessment proceedings - Validity of assessment order - Section 75(4) of the GST Act 2017 - HELD THAT:- Section 75(4) of the GST Act 2017 makes it clear that in cases, where an adverse decision is taken by the Assessing Officer against the assessee, personal hearing is mandatory. Admittedly, in the assessment proceedings, pertaining to the assessment year 2017-18, no personal hearing was afforded to the petitioner. This being the case, on the ground of violation of principles of natural justice as the impugned assessment order has been passed contrary to Section 75(4) of the GST Act 2017, which mandates personal hearing, the impugned assessment order dated 31.10.2022, pertaining to the assessment year 2017-18 has to be quashed and the matter has to be remanded back to the respondent for fresh consideration, on merits and in accordance with law. The impugned assessment order dated 31.10.2022 passed in respect of the assessment year 2017-18 is hereby quashed and the matter is remanded back to the respondent for fresh consideration, on merits and in accordance with law - Petition disposed off. Issues:Challenge to assessment order under GST Act 2017 for assessment year 2017-18 based on lack of personal hearing.Analysis:The writ petition challenges the assessment order dated 31.10.2022 under the GST Act 2017 for the assessment year 2017-18, alleging a violation of natural justice due to the absence of a personal hearing for the petitioner. Section 75(4) of the GST Act 2017 explicitly requires personal hearing to be granted to the assessee when an adverse decision is made against them in assessment proceedings. The petitioner contests that no personal hearing was provided in the impugned assessment order, which resulted in an adverse decision against them, forming the crux of the challenge.During the proceedings, the Court directed the Government Advocate to confirm whether personal hearing was indeed granted to the petitioner for the assessment year 2017-18. The Government Advocate admitted that no personal hearing was given to the petitioner in this case. Given the mandatory nature of personal hearing under Section 75(4) of the GST Act 2017 when adverse decisions are made, the Court concluded that the absence of personal hearing in the assessment proceedings was a violation of natural justice. Consequently, the Court ruled to quash the impugned assessment order dated 31.10.2022 for the assessment year 2017-18 and remand the matter back to the respondent for fresh consideration in accordance with the law and principles of natural justice, emphasizing the necessity of granting the petitioner a personal hearing.Therefore, the impugned assessment order was set aside, and the matter was directed to be reconsidered by the respondent while ensuring adherence to the principles of natural justice, particularly by granting the petitioner the right to a personal hearing. The writ petition was disposed of with this direction, and any connected proceedings were closed without costs.