Taxpayer Wins Challenge: GST Assessment Order Overturned After Denied Hearing, Principles of Natural Justice Restored

HC allowed writ petition challenging tax assessment order due to denial of personal hearing. Court directed Deputy Commissioner to issue fresh notice within two weeks, providing petitioner opportunity for oral hearing as mandated under Section 75(4) of U.P. GST Act, 2017, ensuring principles of natural justice are upheld.

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Issues involved:
Challenge to order passed by Deputy Commissioner, State Tax for tax period 2018-19 due to lack of opportunity of oral hearing before Assessing Authority.

Summary:
The petitioner challenged an order passed by the Deputy Commissioner, State Tax, for the tax period 2018-19, raising a demand in excess of Rs. 27,23,636. The main contention was the denial of an opportunity of oral hearing before the Assessing Authority, as the notice issued to the petitioner did not provide for a personal hearing. The petitioner argued that under Section 75(4) of the U.P. GST Act, 2017, the Assessing Authority was obligated to grant an opportunity of personal hearing before passing an adverse assessment order. The petitioner relied on previous court decisions to support this argument.

Upon review, the court found merit in the petitioner's argument, agreeing with the interpretation of Section 75(4) as established in previous cases. The court emphasized that the Assessing Authority must provide an opportunity for personal hearing, especially in cases involving significant civil liability. Upholding principles of natural justice, the court held that such an opportunity is essential to ensure a fair and reasoned decision, which can be beneficial for both parties and any subsequent appeal process.

Consequently, the court allowed the writ petition, setting aside the impugned order dated 06.12.2022. The matter was remitted back to the Deputy Commissioner, State Tax, with directions to issue a fresh notice to the petitioner within two weeks, ensuring the petitioner's right to a personal hearing and expeditious conclusion of proceedings.

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