Tax Orders Invalidated for Procedural Lapses: Violation of Natural Justice Principles Leads to Quashing of Assessment

HC quashed tax orders due to violation of natural justice principles. The court found the petitioner was denied personal hearing and access to SIB report, which are mandatory procedural requirements under Section 74 of UP GST Act. HC directed authorities to provide SIB report, grant personal hearing, and pass a fresh order after following proper legal procedures.

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Issues involved:
The issues involved in the judgment are the lack of opportunity of personal hearing granted to the petitioner, non-provision of the Special Investigation Branch Report (SIB report), and the violation of principles of natural justice in the order passed under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017.

Summary:

Opportunity of Personal Hearing:
The petitioner, aggrieved by the order passed by the Assistant Commissioner State Tax u/s 74 of the Act and the appellate order passed by the Additional Commissioner, contended that no opportunity of personal hearing was provided. The petitioner's counsel cited relevant judgments emphasizing the necessity of affording an opportunity of hearing before passing an adverse order u/s 74. The State's counsel also acknowledged the lack of hearing granted to the petitioner. Consequently, the Court held that the impugned orders were to be quashed and set aside due to the denial of the opportunity of personal hearing.

Non-Provision of SIB Report:
Additionally, the petitioner highlighted the non-provision of the SIB report despite requests. The Court directed the concerned officer to provide a copy of the SIB report to the petitioner within three weeks. It was emphasized that before the final order under Section 74 of the Act is passed, the petitioner must be granted an opportunity of hearing, as mandated by Section 75(4) of the Act. This step was crucial to ensure procedural fairness and adherence to natural justice principles.

Final Decision:
In conclusion, the Court issued a writ of certiorari, quashing the orders dated December 16, 2021, and November 8, 2023. The officer was directed to furnish the SIB report to the petitioner promptly. Subsequently, the petitioner was to be given an opportunity of hearing before the final order u/s 74 of the Act was passed. The writ petition was allowed in light of the aforementioned directions, ensuring due process and fairness in the proceedings.

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