GST assessment orders quashed for denying personal hearing opportunity and ignoring taxpayer's reply

The Madras HC set aside GST assessment orders due to violation of natural justice principles. The petitioner was not provided opportunity for personal hearing after receiving Form DRC-01 notice dated 29.09.2023, and their reply dated 10.10.2023 was not considered by authorities. Despite inspection based on Indiamart.com advertisement, no finished goods were found in petitioner's premises as claimed by respondent. The court remanded the matter back to authorities for fresh consideration with proper adherence to natural justice. Petition allowed by way of remand.

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Issues involved:
The assessment orders passed by the Assistant Commissioner challenged for assessment years 2017-2018 to 2021-2022.

Details of the judgment:
The petitioner, a manufacturer of knitted fabrics, challenged assessment orders claiming they only supplied knitted fabrics attracting 5% GST, not other finished products. Respondent conducted surprise inspection based on online marketing of other products. Petitioner submitted replies to notices but orders were passed without considering latest reply. Petitioner argued lack of personal hearing opportunity as per GST Act. Court noted previous ruling requiring personal hearing before adverse decision. Respondent argued all opportunities were provided. Court found discrepancy in not providing personal hearing after latest reply and set aside assessment orders. Issue remanded back for fresh consideration with personal hearing opportunity provided.

This judgment highlights the importance of providing a fair opportunity of personal hearing before passing adverse decisions under the GST Act, ensuring principles of natural justice are upheld in assessment proceedings.

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