Taxpayer Challenge Fails: GST Order Upheld After Fair Hearing, Court Directs Statutory Appeal Process Under Section 107

HC Gujarat dismissed a petition challenging a GST tax order, finding the petitioner was provided adequate hearing opportunity under Section 75(4) of GST Act. The court recommended pursuing alternative remedy through appellate authority under Section 107, rejecting arguments about document non-provision and electronic credit ledger blockage.

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Issues Involved:
The petition under Article 227 of the Constitution of India challenging an order in Form GST DRC-07 dated 27/12/2023 issued by the Assistant Commissioner of State Tax (4), Vadodara, regarding the non-provision of relied upon documents and opportunity of hearing u/s 75(4) of the GST Act, and the blockage of credit in Electronic Credit Ledger by Respondent No.3.

Issue 1: Opportunity of Hearing and Provision of Documents
The petitioner challenged the order on the grounds of not being provided with relied upon documents and no opportunity of hearing as required u/s 75(4) of the GST Act. The impugned order in Form GST DRC-07 indicated that the petitioner was given an adequate opportunity of hearing as detailed in Para.5.1 to 5.9 of the order. The contention of the petitioner regarding the lack of opportunity of hearing was deemed not tenable. The petitioner was advised to seek redressal through the alternative efficacious remedy under Section 107 of the GST Act to challenge the impugned order before the appellate authority.

Issue 2: Blockage of Credit in Electronic Credit Ledger
The petitioner's advocate highlighted that Respondent No.3 had blocked the credit in the Electronic Credit Ledger, preventing the petitioner from utilizing it for business purposes. This blockage was causing hindrance to the petitioner's business operations. However, the court did not find this argument sufficient to entertain the petition, leading to its dismissal.

In conclusion, the High Court of Gujarat dismissed the petition challenging the order in Form GST DRC-07 dated 27/12/2023. The court found that the petitioner had been provided with an adequate opportunity of hearing as per the impugned order and suggested seeking recourse through the appellate authority u/s 107 of the GST Act. The issue of blockage of credit in the Electronic Credit Ledger by Respondent No.3 was also addressed but did not lead to the petition being entertained.

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