Mandatory personal hearing under GST: assessment invalid where notice denied hearing, but fresh proceedings remained open.

Under the West Bengal GST Act, 2017, a personal hearing is mandatory before an adverse assessment is made under Section 73 read with Section 75(4). A show cause notice that leaves the hearing date, time and venue as not applicable denies an effective opportunity of hearing, breaches natural justice, and renders the resulting assessment unsustainable. Where the original proceeding is defective on that ground, the authority may still initiate fresh proceedings under Section 73 if a proper hearing is given, and limitation under Section 73(10) runs from the date of the new notice.

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Issues: (i) Whether the show cause notice and assessment order were vitiated for failure to afford a personal hearing in the course of proceedings under the West Bengal Goods and Services Tax Act, 2017. (ii) Whether the impugned proceedings were liable to be set aside with liberty to initiate fresh proceedings and with limitation to run from the date of a new notice.

Issue (i): Whether the show cause notice and assessment order were vitiated for failure to afford a personal hearing in the course of proceedings under the West Bengal Goods and Services Tax Act, 2017.

Analysis: The notice left the columns for date, time and venue of hearing marked as not applicable, showing that no effective opportunity of personal hearing was afforded. In proceedings under Section 73 read with Section 75(4) of the West Bengal Goods and Services Tax Act, 2017, a hearing is mandatory where an adverse decision is contemplated. Since the assessment proceeded on a notice that denied that opportunity, the defect went to the root of the adjudication and attracted the principles of natural justice.

Conclusion: The show cause notice and the assessment order were vitiated and could not be sustained.

Issue (ii): Whether the impugned proceedings were liable to be set aside with liberty to initiate fresh proceedings and with limitation to run from the date of a new notice.

Analysis: Once the initial proceeding was found defective, the consequential assessment based on that notice could not survive. At the same time, the authority was not precluded from commencing a fresh proceeding under Section 73 of the West Bengal Goods and Services Tax Act, 2017, provided a proper opportunity of hearing was granted. The Court also directed that, if such fresh proceeding is initiated, the limitation under Section 73(10) would run from the date of the new notice.

Conclusion: Fresh proceedings were permitted, and limitation was directed to commence from the date of the new notice.

Final Conclusion: The impugned tax proceedings were annulled for breach of the hearing requirement, while leaving open the authority's power to start afresh in accordance with law.

Ratio Decidendi: Where adverse GST adjudication is undertaken without affording the statutorily mandated opportunity of hearing, the resulting assessment cannot be sustained, though a fresh proceeding may be initiated lawfully after giving such opportunity.

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