Personal hearing in GST tax adjudication is mandatory before determining liability; ex parte order was set aside.

An order determining tax under the GST enactments was held unsustainable where it was passed without granting the taxpayer a personal hearing. The Court applied the settled principle that, before tax liability is adjudicated, the affected person must ordinarily be given an opportunity of oral hearing; that safeguard was treated as applicable to determination under Section 73(9) as well. Because no personal hearing had been afforded, the tax determination order could not stand and was set aside, with the matter remitted for fresh decision after hearing the taxpayer.

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Issues: Whether an order determining tax under Section 73(9) of the Goods and Services Tax enactments could be sustained when passed without granting an opportunity of personal hearing.

Analysis: The Court applied the settled principle that, where tax liability is determined, the affected person must ordinarily be afforded a personal hearing before the adjudication order is passed. Relying on the earlier decision on the requirement of hearing in tax adjudication, the Court held that the same safeguard governs determination of tax under Section 73(9) as well. Since no opportunity of oral hearing had been given, the impugned order could not stand.

Conclusion: The tax determination order was unsustainable and was set aside, with the matter remitted to the authority for fresh decision after granting personal hearing.

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