Personal hearing under GST law is mandatory before adverse determination; ex parte order set aside and remanded.

An order under Section 73 of the WBGST/CGST Act, 2017 cannot be sustained where an adverse determination is made without affording a personal hearing under Section 75(4). Even though the taxpayer did not file a written request for hearing or a response to the show-cause notice, the proposed adverse decision triggered the statutory duty to hear the taxpayer. The final order was set aside and the matter was remanded for fresh consideration on merits after granting a personal hearing.

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Issues: Whether an order passed under Section 73 of the WBGST/CGST Act, 2017 could be sustained when no opportunity of personal hearing was afforded, notwithstanding the absence of a written request by the taxpayer.

Analysis: Section 75(4) of the WBGST/CGST Act, 2017 obliges the proper officer to afford a hearing before passing an order under Sections 73 or 74 where a written request is made or where an adverse decision is contemplated. Although no written request for hearing had been made and the taxpayer had not filed a response to the show-cause notice, the proposed adverse determination attracted the statutory requirement of hearing. In these circumstances, the absence of a personal hearing rendered the final order unsustainable.

Conclusion: The final order was set aside and the matter was remanded for fresh decision on merits after affording a personal hearing.

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