Mandatory pre-decisional hearing under GST cannot be replaced by written reply; adverse assessment set aside and remitted.
Section 75(4) of the U.P. GST Act requires a personal hearing before an adverse assessment order is passed against a registered person. A notice calling for a written reply does not replace that statutory oral hearing, and the reminder notice showing "NA" for personal hearing indicated that none was fixed. Because the petitioner was denied the mandatory pre-decisional hearing, the assessment order was contrary to the prescribed procedure and could not stand. The order was set aside and the matter remitted for fresh adjudication after allowing a final reply and hearing.
Issues: Whether an assessment order passed under the U.P. G.S.T. Act, 2017 could survive when no personal hearing was afforded before taking an adverse decision.
Analysis: Section 75(4) of the U.P. G.S.T. Act, 2017 mandates an opportunity of personal hearing before any adverse order is passed against a registered person. The notice under Section 74 of the Act required a written reply, but the reminder notice recorded "NA" against the column for personal hearing, showing that no hearing was proposed or fixed. On the admitted record, the petitioner was therefore denied the statutory oral hearing. The statutory scheme treats the opportunity to file a written reply and the opportunity of oral hearing as distinct safeguards, and failure to avail or grant one does not extinguish the other.
Conclusion: The impugned order was contrary to the mandatory procedure and could not stand. It was set aside and the matter was remitted for fresh adjudication after affording the petitioner an opportunity to file a final reply and appear for hearing.
Final Conclusion: The petition succeeded on the ground of breach of mandatory pre-decisional hearing, and the assessment was restored for fresh consideration in accordance with law.
Ratio Decidendi: Where a taxing statute expressly requires a personal hearing before an adverse decision, denial of that hearing vitiates the order notwithstanding any opportunity to submit a written reply.
TaxTMI 
AI Drafter ✕
TaxTMI 
