2024 (11) TMI 105 - HC - GST

Taxpayer Wins Challenge to GST Assessment, Granted Personal Hearing and Partial Relief with Procedural Safeguards

HC allowed petitioner's challenge to GST assessment order. Court set aside original order, directing respondents to provide personal hearing. Petitioner ... Seeking restraint on 1st and 2nd Respondents from proceedings with the recovery pursuant to the impugned order - Opportunity of hearing not provided - violation of principles of natural justice - HELD THAT:- In the present case, since the show cause notice as well as the reminder notices were uploaded in the GST Portal, the Petitioner was not aware of the same and therefore he is not in a position to file reply for the show cause notice. Further, it appears that no opportunity of personal hearing was provided to the Petitioner prior to the passing of impugned order. Hence, this Court is of the view that the impugned orders are passed in violation of principles of natural justice and it is just and necessary to provide an opportunity to the Petitioner to establish their case on merits. In such view of the matter, this Court is inclined to set aside the impugned order dated 18.04.2024 passed by the 1st Respondent. The impugned order dated 18.04.2024 is set aside and the matter is remanded to the Respondents for fresh consideration on condition that the Petitioner shall pay 10% of disputed tax to the Respondents within a period of four weeks from the date of receipt of a copy of this order and the setting aside of the impugned order will take effect from the date of payment of the said amount - The Petitioner shall file their reply/objection along with the required documents, if any, within a period of two weeks thereafter. Petition disposed off by way of remand. Issues:Challenging orders of 1st Respondent, violation of principles of natural justice, opportunity of hearing not provided, setting aside impugned order.Analysis:The writ petition was filed challenging the orders of the 1st Respondent dated 18.04.2024 and seeking to quash the same. The petitioner also requested to restrain the 1st and 2nd Respondents from proceeding with the recovery pursuant to the impugned order under Form GST DRC-07. The main contention was that the impugned assessment order was passed without affording an opportunity of hearing to the Petitioner, which was a violation of principles of natural justice. The Petitioner was not aware of the show cause notice and reminder notices uploaded in the GST portal, leading to the inability to file a reply. The Court noted the lack of personal hearing before the passing of the impugned order and deemed it necessary to provide an opportunity for the Petitioner to establish their case on merits.The Court considered the submissions of both parties and decided to set aside the impugned order dated 18.04.2024. The matter was remanded to the Respondents for fresh consideration with the condition that the Petitioner shall pay 10% of the disputed tax within four weeks. The Petitioner was directed to file their reply/objection along with required documents within two weeks thereafter. The Respondent was instructed to issue a clear notice for a personal hearing and pass appropriate orders expeditiously. The Court also ordered the lifting of the attachment on the Petitioner's bank account upon proof of payment of the 10% demanded amount. Additionally, any Garnishee order issued by the Respondents was to be revoked upon compliance with the Court's payment order.In conclusion, the writ petition was disposed of with no costs, and the connected miscellaneous petitions were closed. The judgment highlighted the importance of providing an opportunity for a fair hearing and ensuring compliance with principles of natural justice in administrative proceedings.