Appeal Granted: Judgment Overturned for Breach of Natural Justice, New Order Required with Fair Hearing Under GST Act.

The HC allowed the appeal, setting aside the impugned judgment and show cause notice due to a violation of natural justice principles. The 1st respondent must issue a new order after considering the appellant's reply and granting a personal hearing, ensuring compliance with procedural fairness under the GST Act.

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Issues involved:
The issues involved in the judgment are the violation of principles of natural justice in a tax demand case under the GST Act.

Details of the judgment:

Issue 1: Violation of principles of natural justice
The appellant, an assessee under the GST Act, filed returns and paid tax for the assessment year 2017-18. The 1st respondent proposed to demand tax along with interest on alleged non-payment of tax due and claim of excess input tax credit. The appellant replied to the proposal and requested an opportunity for a personal hearing. However, the 1st respondent issued a show cause notice demanding tax and interest without considering the appellant's reply or granting a personal hearing. The court held that the impugned order violated the principles of natural justice as the appellant was not given a fair opportunity to present their case. Therefore, the court set aside the order and directed the 1st respondent to pass a fresh order after considering the appellant's contentions and providing an opportunity for a personal hearing.

In conclusion, the High Court allowed the appeal, setting aside the impugned judgment and the show cause notice. The 1st respondent was directed to pass a fresh order after taking into account the appellant's reply and providing an opportunity for a personal hearing, thereby upholding the principles of natural justice in the tax demand case under the GST Act.

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