Assessment Order Overturned: GST Dealer Wins Reassessment Due to Missing Report & Lack of Hearing u/s 75(4.

The HC set aside the assessment order against the petitioner, a registered dealer under the GST Act, citing the non-furnishing of a crucial report and lack of a personal hearing, as required by section 75(4) of the GST Act. The matter was remanded for reassessment, ensuring due process and adherence to principles of natural justice.

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Issues:
1. Assessment order based on fraudulent input tax credit availed.
2. Rejection of objections by the petitioner.
3. Non-furnishing of the report of the Additional Commissioner of Commercial Taxes.
4. Lack of opportunity for a personal hearing to the petitioner.

Analysis:
1. The petitioner, a registered dealer under the Goods and Service Tax Act, faced a show-cause notice regarding fraudulent input tax credit availed. The notice demanded payment of the wrongly availed amount, leading to an assessment order imposing tax, penalty, and interest. The petitioner challenged this order in a Writ Petition, citing various grounds of contention.

2. The petitioner's counsel argued that the assessment order failed to consider the objections raised, violating principles of natural justice. The petitioner also highlighted the non-furnishing of a crucial report requested in the objections. Moreover, the absence of a personal hearing opportunity was emphasized, as required by section 75(4) of the GST Act.

3. The Assistant Government Pleader defended the assessing officer's actions, stating that the objections lacked substance and were merely references to legal judgments. Regarding the personal hearing notice, it was sent to the petitioner's address but returned undelivered. The non-furnishing of the report was justified by suggesting the petitioner should have personally approached for document inspection.

4. The High Court found merit in the petitioner's argument regarding the non-furnishing of the report, citing a previous judgment requiring such reports to be provided before passing an assessment order. Consequently, the assessment order was set aside, and the matter was remanded for reassessment after furnishing the report and granting a personal hearing to the petitioner. The Court ruled in favor of the petitioner, emphasizing the importance of due process in tax assessments.

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