Fair hearing and reasoned orders are mandatory before rejecting input tax credit under Section 73; orders were quashed and remanded.

Assessment and appellate orders rejecting input tax credit under Section 73 were procedurally unsustainable where the notice did not fix a personal hearing date or disclose reasons, the assessing authority passed an unreasoned order, and the appellate authority relied on new factual material without giving rebuttal opportunity. The text underscores that fair hearing and a reasoned, speaking decision are mandatory before adverse tax action is sustained. The impugned orders were quashed and the matter was remanded for fresh consideration after hearing all stakeholders.

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Issues: Whether the assessment and appellate orders rejecting input tax credit under Section 73 were unsustainable for want of notice, opportunity of hearing, reasons, and consideration of new factual material.

Analysis: The notice did not fix a date for personal hearing and did not disclose reasons for initiating proceedings. The assessing authority passed the order without recording reasons, and the appellate authority relied on new facts that were not put to the petitioner for rebuttal. Such procedure violated the requirement of fair hearing and a reasoned decision.

Conclusion: The impugned orders were quashed and the matter was remanded for a fresh reasoned and speaking order after hearing all stakeholders.

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