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Petitioner Wins: GST Assessment Order Overturned Due to Fundamental Procedural Defect in Section 74 Hearing Rights HC allowed the writ petition challenging GST assessment order. The court found procedural irregularities, specifically lack of hearing opportunity for the ...
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Petitioner Wins: GST Assessment Order Overturned Due to Fundamental Procedural Defect in Section 74 Hearing Rights
HC allowed the writ petition challenging GST assessment order. The court found procedural irregularities, specifically lack of hearing opportunity for the petitioner under section 74 of GST Act. Original order was quashed, directing respondent to issue fresh order after providing proper hearing to the petitioner. Limitation period objection was considered but did not impact the primary procedural violation.
Issues involved: The issues involved in the judgment are improper description of respondent no.1, dismissal of appeal due to limitation period, lack of opportunity of hearing granted to the petitioner, and the quashing of orders passed under section 74 of the GST Act.
Improper Description of Respondent: The counsel for the respondent no.1 raised an objection regarding the improper description of the respondent, which was found to be correct. However, it was noted that the outcome of the writ petition would not be affected by this discrepancy.
Dismissal of Appeal Due to Limitation Period: The petitioner's firm, registered under GST, received a show cause notice and subsequent order under section 74(9) confirming a demand. The petitioner claimed inability to appeal within the prescribed time due to an incurable disease, supported by a medical certificate. The appeal was dismissed for being beyond the limitation period, with the petitioner arguing that the original order should not merge with the appellate order.
Lack of Opportunity of Hearing: The petitioner contended that no opportunity of hearing was granted before the order under section 74(9) of the GST Act was passed. Records revealed that a reminder notice was sent to the petitioner, but no personal hearing was scheduled. The court found that no opportunity of hearing was indeed granted to the petitioner, leading to the quashing of the order under section 74 and subsequent orders.
Quashing of Orders under Section 74: Based on the lack of opportunity of hearing granted to the petitioner, the court referred to a previous judgment and allowed the present petition. Citing the mandatory requirement of granting an opportunity of hearing under section 75(4) of the GST Act, the court quashed the order passed against the petitioner under section 74. Consequently, the related orders were also quashed, and the respondent was directed to pass a fresh order after providing an opportunity of hearing in accordance with the law.
Conclusion: The writ petition was allowed, and the original records were returned to the learned Standing Counsel as per the court's order.
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