Taxpayer Wins Challenge Against GST Assessment Order Due to Procedural Irregularities and Lack of Reasoned Decision Petitioner challenged an assessment order under GST Act for non-GST turnover without personal hearing. HC found the order unsustainable due to lack of ...
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Taxpayer Wins Challenge Against GST Assessment Order Due to Procedural Irregularities and Lack of Reasoned Decision
Petitioner challenged an assessment order under GST Act for non-GST turnover without personal hearing. HC found the order unsustainable due to lack of reasoning and failure to consider petitioner's reply. The court set aside the order, remanded the matter for reconsideration, and directed a fresh order with personal hearing within two months. WP disposed of without costs.
Issues involved: Challenge to order u/s 73 of TNGST Act for non-GST turnover without providing personal hearing post-reply to show cause notice.
Summary: The petitioner challenged an order dated 28.12.2023 on the grounds of lack of personal hearing post-reply to the show cause notice. The petitioner's reply on 01.11.2022 addressed alleged non-GST turnover, followed by a show cause notice on 17.11.2022 and a reply on 17.02.2023. The impugned assessment order was issued on 28.12.2023.
The petitioner contended that the impugned order did not consider their reply stating no non-GST turnover, explaining non-operating revenue sources. The petitioner's request for personal hearing was not accommodated before the order issuance.
The respondent, through the Government Advocate, mentioned that the petitioner's e-mail dated 05.12.2022 was not received, and the petitioner did not opt for a personal hearing. However, the statutory mandate u/s 75(4) of GST enactments requires a personal hearing if requested or if an adverse order is proposed.
The Court noted that although the petitioner initially opted for no personal hearing, they later requested it via e-mail. The impugned order lacked reasoning for rejecting the petitioner's reply, making it unsustainable. Consequently, the order dated 28.12.2023 was set aside, and the matter was remanded for reconsideration with a directive to provide a reasonable opportunity, including a personal hearing, and issue a fresh order within two months.
In conclusion, W.P.No.9482 of 2024 was disposed of without costs, and connected miscellaneous petitions were closed accordingly.
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