High Court Quashes Tax Assessment Order for Violating Natural Justice, Mandates Personal Hearing Under Section 75(4)

HC allowed petitioner's writ challenging tax assessment order. The court found a violation of natural justice principles due to denial of oral hearing, despite revenue's argument that petitioner declined hearing opportunity. HC set aside the impugned order and directed fresh proceedings with proper notice, emphasizing mandatory requirement of personal hearing under Section 75(4) of U.P. GST Act, 2017.

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Issues involved: Challenge to order dated 05.11.2022 passed by Assistant Commissioner for tax period 2018-19, regarding denial of opportunity of oral hearing to the petitioner.

Summary:
The petitioner challenged an order passed by the Assistant Commissioner for a tax period, contending that he was denied the opportunity of oral hearing. The petitioner argued that the Assessing Authority did not provide any opportunity for personal hearing, as required by law. The petitioner relied on Section 75(4) of the U.P. GST Act, 2017, and previous court decisions to support the claim that the Assessing Authority was obligated to grant a personal hearing before making an adverse assessment order. On the other hand, the revenue's counsel argued that the petitioner had declined the opportunity for a hearing by selecting 'No' in the online reply to the show-cause notice. The court examined Section 75(4) of the Act and agreed with previous court decisions that emphasized the mandatory nature of providing a personal hearing before passing an adverse order. The court stressed the importance of granting a fair opportunity of hearing, especially in cases involving significant civil liabilities. It emphasized the principles of natural justice and the need for authorities to ensure genuine opportunities for hearing to uphold fairness and justice. Consequently, the court allowed the writ petition, set aside the impugned order, and directed the matter to be remitted for a fresh notice to be issued to the petitioner, ensuring a proper opportunity for hearing and concluding the proceedings promptly.

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