2024 (1) TMI 284 - HC - GST

Tax Order Overturned: Procedural Fairness Prevails as Personal Hearing Rights Affirmed Under Section 75 of GST Act

HC quashed tax order due to lack of personal hearing under Section 75 of Tamil Nadu GST Act. Respondent acknowledged procedural error and agreed to ... Personal hearing - statutory mandate under Section 75 of the Tamil Nadu Goods and Services Tax Act, 2017 - quashing of order for non-compliance with statutory personal hearing and remand for fresh considerationPersonal hearing - statutory mandate under Section 75 of the Tamil Nadu Goods and Services Tax Act, 2017 - quashing of order for non-compliance with statutory personal hearing and remand for fresh consideration - Validity of the impugned demand order in view of alleged non-provision of personal hearing as required by statute - HELD THAT: - The Court found that the impugned order calling upon the petitioner to pay the demanded sum was rendered without affording the petitioner the personal hearing mandated by Section 75 of the Tamil Nadu Goods and Services Tax Act, 2017. Given the statutory requirement, non-compliance vitiated the order. The respondent did not contest the procedural lapse and consented to reconsideration. In these circumstances the appropriate relief was to quash the impugned order and remit the matter for fresh consideration with a direction to afford the petitioner a personal hearing and thereafter pass a reasoned order. The Court imposed a time limit of four weeks from receipt of the copy of this order for disposal on reconsideration. [Paras 4]Impugned order quashed for non-compliance with the statutory personal hearing requirement; matter remanded for reconsideration after affording personal hearing and a reasoned order to be issued within four weeks.Final Conclusion: Writ petition allowed: the demand order dated 11.10.2023 is quashed and the matter remanded for fresh consideration after affording the petitioner a personal hearing; respondent directed to pass a reasoned order within four weeks; petition disposed without costs. Issues involved:The petitioner challenges an order demanding payment under GSTR 1 without a personal hearing as required by Section 75 of the Tamil Nadu Goods and Services Tax Act, 2017.Issue 1: Lack of Personal HearingThe petitioner contests an order to pay a sum under GSTR 1 without being granted a personal hearing, as stipulated by Section 75 of the Tamil Nadu Goods and Services Tax Act, 2017.Judgment Details:The petitioner contested an order dated 11.10.2023 demanding payment under GSTR 1 without a personal hearing, contrary to the requirement of Section 75 of the Tamil Nadu Goods and Services Tax Act, 2017. The respondent acknowledged the absence of a personal hearing and agreed that the matter should be reconsidered. Consequently, the High Court quashed the impugned order and remanded the case for a fresh consideration. The respondent was directed to provide the petitioner with a personal hearing and issue a reasoned order within four weeks from the receipt of the court's directive.Outcome:The High Court, in W.P.No.35894 of 2023, disposed of the case by quashing the order dated 11.10.2023 and remanding the matter for reconsideration with a directive for a personal hearing to be provided to the petitioner within a maximum period of four weeks. No costs were imposed, and connected Miscellaneous Petitions were closed as a result of this judgment.