Tax Assessment Order Quashed Due to Denial of Mandatory Personal Hearing Under Section 75(4) of GST Act

HC allowed writ petition challenging tax assessment order. The court found that the Assessing Authority failed to provide mandatory personal hearing under Section 75(4) of U.P. GST Act, 2017. Order was set aside and matter remitted for fresh notice and proper hearing, ensuring procedural fairness in tax assessment proceedings.

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Issues involved:

The issues involved in the judgment are the failure to provide an opportunity of personal hearing before passing an adverse assessment order under Section 75(4) of the U.P. GST Act, 2017.

Issue 1: Opportunity of Personal Hearing

The challenge in the present petition was against the order passed by the Deputy Commissioner, State Tax, Sector-9, Meerut, raising a demand in excess of Rs. 54,76,018 for the tax period 2020 to 2021. The petitioner contended that the Assessing Authority was obligated to grant an opportunity of personal hearing before passing an adverse assessment order, as per Section 75(4) of the Act. The petitioner relied on previous court decisions to support this argument. The court agreed with the petitioner's stance, emphasizing that the Assessing Authority must provide an opportunity of hearing without the need for a specific request from the assessee. The court highlighted the importance of ensuring a genuine opportunity for a hearing, especially in cases involving significant civil liabilities. The court concluded that the impugned order was set aside, and the matter was remitted for the issuance of a fresh notice to the petitioner to allow for a proper hearing.

Decision:

The High Court allowed the writ petition, setting aside the order dated 18.08.2023 and remitting the matter to the Deputy Commissioner, State Tax, Sector-9, Meerut, to issue a fresh notice to the petitioner within two weeks. The petitioner was directed to appear before the authority for further proceedings to be conducted promptly.

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