Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Step 1 – Issue Identification & Review
The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI • Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions • Judicial precedents and Supreme Court, High Court and other citations • Issue-wise legal analysis • Practical arguments and supporting content • Professionally structured draft ready for further review.
Legal Challenge: GST Demand Order Overturned Due to Lack of Fair Hearing, Emphasizing Principles of Natural Justice The HC quashed an ex-parte demand order of Rs. 71,39,146 under GST Act, finding violation of natural justice principles. The court held that the Assessing ...
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Provisions expressly mentioned in the judgment/order text.
Legal Challenge: GST Demand Order Overturned Due to Lack of Fair Hearing, Emphasizing Principles of Natural Justice
The HC quashed an ex-parte demand order of Rs. 71,39,146 under GST Act, finding violation of natural justice principles. The court held that the Assessing Authority must provide a genuine opportunity of oral hearing before passing an adverse order, irrespective of the taxpayer's initial online response. The matter was remitted for a fresh hearing within two weeks.
Issues involved: Challenge to ex-parte demand order u/s 73 of State Goods & Service Tax Act and denial of opportunity of oral hearing before Assessing Authority.
Challenge to ex-parte demand order: The petitioner filed a writ petition seeking to quash the ex-parte demand order dated 30.12.2023 issued by the Assistant Commissioner, State Tax, Sector-2, Pratapgarh, Uttar Pradesh u/s 73 of the State Goods & Service Tax Act. The order raised a demand in excess of Rs. 71,39,146 against the petitioner. The main ground raised was the denial of opportunity of oral hearing before the Assessing Authority, as the petitioner was not given a chance for personal hearing as required by law.
Denial of opportunity of oral hearing: The petitioner argued that the Assessing Authority failed to provide an opportunity of personal hearing before passing the adverse assessment order, which is a violation of Section 75(4) of the U.P. GST Act, 2017. The petitioner relied on a previous court decision and a Gujarat High Court case to support the claim that the opportunity of hearing must be granted before passing an adverse order. On the other hand, the revenue's counsel contended that the petitioner had declined the opportunity of hearing by selecting 'No' in the online reply to the show-cause notice.
Court's Decision: The Court agreed with the petitioner's argument that the Assessing Authority was obligated to provide an opportunity of personal hearing before passing an adverse order, regardless of the petitioner's initial choice in the online reply. The Court emphasized the importance of providing a genuine opportunity of hearing in cases involving heavy civil liabilities to ensure the principles of natural justice are upheld. The impugned order dated 30.12.2023 was set aside, and the matter was remitted to the Assistant Commissioner to issue a fresh notice to the petitioner within two weeks for a fair hearing process.
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