2024 (12) TMI 586 - HC - GST

Landmark GST Ruling: Procedural Fairness Prevails as Hearing Rights Protect Taxpayer Interests Under Section 75(4)

HC allowed petition challenging GST Act orders, finding they were passed without providing hearing opportunity as mandated under Section 75(4). The court ... Dismissal of appeal preferred by the petitioner under Section 107 of GST Act - availment of ITC by mistake but the same was not utilized - order passed without providing opportunity of personal hearing - violation of principles of natural justice - HELD THAT:- From the records as produced by learned Standing Counsel, in the notice issued under Section 74 of GST Act, the date by which the reply was to be submitted was mentioned as 08.01.2022, however, date of personal hearing, time of personal hearing and venue of personal hearing were not indicated and simply the word 'NA' was transcribed. Even in the reminder notice sent to the petitioner, in the coloumn of date of personal hearing, time of personal hearing and venue of personal hearing, 'NA' was transcribed. Considering the fact that the original order is contrary to the mandate of Section 75(4) of GST Act and is also violative of principles of natural justice, the order dated 01.02.2022 is liable to be quashed and is accordingly quashed - As the impugned order has been quashed, order dated 24.04.2024 is also quashed. Matter is remanded to respondent no.3 to pass fresh orders after giving an opportunity of hearing and after permitting the petitioner to file a reply to the show-cause notice, in accordance with law - Petition allowed by way of remand. The petitioner challenged orders under Section 74 of GST Act and order-in-appeal. The High Court quashed the orders as they were passed without providing an opportunity of hearing, contrary to Section 75(4) of GST Act. The matter is remanded to respondent no.3 for fresh orders with proper hearing. Petition allowed. (Allahabad High Court, TMI citation)