2025 (4) TMI 1519 - HC - GST

GST Assessment Orders Invalidated Due to Denial of Personal Hearing, Ensuring Taxpayer's Right to Fair Procedural Opportunity Under Section 73

HC quashed GST assessment orders under Section 73, finding violation of mandatory personal hearing requirement. Relying on precedent, the court held that ... Violation of principles of natural justice - no opportunity of hearing was granted prior to passing of the order under section 73 of the Act - dismissal of appeal on the ground of time limitation - HELD THAT:- The said issue with regard to grant of personal hearing was dealt with in Bharat Mint and Allied Chemicals vs. Commissioner Commercial Tax [2022 (3) TMI 492 - ALLAHABAD HIGH COURT] where it was held that the impugned order dated 9.11.2021 could not be sustained due to the lack of a proper opportunity of personal hearing. The matter is remanded to the assessing authority to pass a fresh order in accordance with law after giving an opportunity of hearing - Petition allowed by way of remand. The Allahabad High Court, through Hon'ble Justice Pankaj Bhatia, quashed the orders dated 30.08.2024 and 22.02.2025 passed under Section 73 of the GST Act and dismissed on limitation grounds without pre-deposit. The petitioner contended that a mandatory personal hearing under Section 75(4) of the GST Act was not granted. The Court noted the petitioner did not opt for personal hearing, but relying on precedent in Bharat Mint and Allied Chemicals v. Commissioner Commercial Tax (Writ Tax No.1029 of 2021), held that the opportunity of hearing is mandatory. Consequently, the orders were set aside and the matter remanded to the assessing authority to pass a fresh order 'after giving an opportunity of hearing,' allowing the petitioner to raise all available defenses. The writ petition was allowed.