Tax Assessment Invalidated: Procedural Fairness Demands Proper Hearing Under CGST Act Section 74(9)

HC ruled that an order under CGST Act, s.74(9) determining tax, interest, and penalty was invalid due to lack of hearing opportunity as mandated by r.75(4). The court set aside the order and directed respondents to reconsider the matter after providing petitioners a proper hearing, ensuring procedural fairness in tax assessment.

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Issues involved: Challenge to order u/s 74(9) of CGST Act, 2017 for tax, interest, and penalty without opportunity of hearing u/r 75(4).

Summary:
The High Court of Calcutta addressed a case where the Deputy Commissioner of State Tax Bureau of Investigation passed an order u/s 74(9) of the Central Goods and Services Tax Act, 2017 determining tax, interest, and penalty due from the petitioners. The petitioners contested the order, arguing that it was issued without providing them with a hearing as mandated by u/r 75(4) of the said Act. The State respondents claimed that the opportunity was offered but not utilized by the petitioners. However, the court held that as per u/r 75(4), an opportunity of hearing must be granted when an adverse decision is contemplated, and since the petitioners were not given this chance, the impugned order was set aside. The court directed the respondent to reconsider the matter after affording the petitioners a proper hearing. The case was disposed of without costs, and parties were allowed to obtain a certified copy of the order upon application.

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