Taxpayer Wins Challenge Against Assessment Order After Denied Hearing, Securing Procedural Fairness and Right to Representation

RTP challenged a tax assessment order due to lack of hearing opportunity under Section 75(4) of GST Act. SC found the order unsustainable, set aside the original assessment, and directed respondent to provide proper hearing. The case emphasized procedural fairness, requiring administrative authorities to grant legitimate opportunity for representation before making final determinations.

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Issues Involved:
The judgment deals with the failure to provide an opportunity of hearing to the Registered Taxable Person (RTP) as required under Section 75(4) of The Central Goods and Services Tax Act, 2017.

Summary:

Issue 1: Opportunity of Hearing

The Assistant Commissioner of Revenue issued a show-cause notice under Section 73(1) of The Central Goods and Services Tax Act, 2017 to determine tax liabilities for the financial year 2017-2018. The petitioner, aggrieved by the subsequent order, appealed to the Senior Joint Commissioner of Revenue. The petitioner explicitly requested an opportunity of hearing in response to the show-cause notice, as mandated by Section 75(4) of the Act. The appellate authority's assertion that a reasonable opportunity was provided at the adjudicating level was found to be unsupported by the records. Therefore, the order was set aside, directing the respondent to dispose of the show-cause after affording the petitioner a proper opportunity of hearing.

Decision:

The impugned order was deemed unsustainable due to the lack of a proper opportunity of hearing as required by law. The order passed by the adjudicating authority was also set aside. The respondent was directed to reevaluate the show-cause notice and reply, ensuring the petitioner is granted an opportunity of hearing. The petitioner was permitted to withdraw the deposits made for the appeal case, and the case was disposed of without any costs awarded. Parties were instructed to act on the server copy of the order, and certified copies were to be provided upon request.

This summary highlights the key issues of the judgment, focusing on the failure to provide a necessary opportunity of hearing to the petitioner in accordance with the relevant legal provisions.

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