Mandatory pre-assessment hearing under GST upheld, with demand and appellate orders quashed for breach of natural justice.

An assessment order under the GST law and the related appellate order were challenged on the ground that no opportunity of hearing was granted before the demand was passed. The HC applied the mandatory requirement of prior hearing under Section 75(4) and noted that the record did not dispute the absence of a hearing notice or opportunity. On that basis, the assessment and appellate orders were set aside for breach of the hearing requirement, with liberty to the department to proceed afresh in accordance with law after giving due notice and an opportunity of hearing.

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Issues: Whether the assessment order passed under Section 73 of the GST regime and the appellate order dismissing the appeal as time-barred could be sustained when no opportunity of hearing was granted in terms of Section 75(4).

Analysis: The pleadings and the impugned order showed no denial that no hearing notice or opportunity was afforded before passing the demand order. The mandate of prior hearing under Section 75(4) was applied, and the matter was treated as covered by the earlier decision relied upon by the petitioner on the same point.

Conclusion: The orders dated 21.01.2022 and 14.03.2024 were set aside for breach of the requirement of hearing, with liberty to proceed afresh in accordance with law after giving an opportunity of hearing.

Final Conclusion: The writ petition succeeded and the demand and appellate orders were annulled on the ground of denial of hearing, while leaving the department free to initiate fresh proceedings after due notice.

Ratio Decidendi: An order under the GST law passed without affording the statutorily mandated opportunity of hearing cannot be sustained and is liable to be quashed.

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