Tax Authority Order Invalidated Due to Lack of Reasoning and Denied Personal Hearing, Case Remanded for Reconsideration

HC set aside an order dated 30.12.2023 for lack of reasoning and failure to provide personal hearing. The tax authority's order was found non-speaking and in violation of statutory requirements. The case was remanded for reconsideration, directing respondent to grant petitioner a personal hearing and issue a fresh order within three months, with no costs awarded.

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Issues: Lack of reasoning in the order, failure to provide a personal hearing

The judgment pertains to an order dated 30.12.2023 challenged for being non-speaking and for not providing a personal hearing to the petitioner. The proceedings commenced with a show cause notice on 07.09.2023, to which the petitioner responded on 04.10.2023 and 07.12.2023 following a reminder notice. The petitioner contended that the impugned order did not discuss their reply or provide reasons for rejection, and a personal hearing was not granted. The respondent, represented by Mr. T.N.C. Kaushik, mentioned that the tax proposal was confirmed due to the petitioner's failure to submit all requested documents. The court observed that the impugned order acknowledged the petitioner's reply but lacked discussion on it, merely stating that proper documents were not provided. The order was deemed unreasoned and unsustainable. Additionally, the court noted the violation of sub-section(4) of Section 75 of GST enactments, which mandates a personal hearing if requested or if an adverse order is proposed. Consequently, the order dated 30.12.2023 was set aside, and the matter remanded for reconsideration, directing the respondent to afford the petitioner a reasonable opportunity, including a personal hearing, and issue a fresh order within three months of receiving the petitioner's reply. The case, W.P.No.11625 of 2024, was disposed of with no costs, and the connected miscellaneous petition was closed.

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