Tax Assessment Annulled: Procedural Fairness Prevails, Hearing Rights Upheld Under Section 73(9)

HC allowed the writ petition challenging tax determination u/s 73(9) of CGST/SGST Act. The court found a violation of natural justice principles due to lack of personal hearing. The impugned order was quashed, directing respondents to pass a fresh order after providing petitioner an opportunity for oral hearing, thereby ensuring procedural fairness in tax assessment.

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Issues involved: Challenge to tax determination u/s 73(9) of CGST/SGST Act without opportunity of oral hearing. Interpretation of mandatory personal hearing u/s 75(4) of CGST/UPGST Act 2017 and breach of natural justice principles.

The petitioner challenged an order determining tax u/s 73(9) of the CGST/SGST Act, claiming it was passed without granting an oral hearing. The petitioner relied on a previous judgment to argue for the mandatory nature of personal hearing u/s 75(4) of the CGST/UPGST Act 2017. The Court considered various exceptions to the rule of alternative remedy, emphasizing instances where orders were passed in violation of natural justice principles or lacked jurisdiction. Citing precedents, the Court highlighted the importance of personal hearing in tax determinations. Ultimately, the impugned order was quashed, granting liberty to the respondents to pass a fresh order after providing the petitioner with a personal hearing.

The Additional Chief Standing Counsel objected to the order being passed u/s 75(4) of the CGST/UPGST Act, emphasizing the necessity of personal hearing in tax determinations. The Court noted that tax was determined against the petitioner u/s 73(9) of the CGST/SGST Act, reiterating the requirement for a personal hearing before any tax determination, even under this section. Consequently, the impugned order was set aside, and the matter was remanded for a fresh order with the petitioner being granted a personal hearing.

In conclusion, the writ petition was allowed, and the impugned order dated 29.12.2023 was set aside, with directions for a fresh order to be passed after affording the petitioner an opportunity of personal hearing.

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