Pre-decisional hearing under GST is mandatory; failure to hear the taxpayer before an adverse order vitiates adjudication and requires remand.

Section 75(4) of the GST law requires the proper officer to grant a pre-decisional opportunity of hearing before passing an adverse order, even without a specific request from the registered person. In the absence of any recorded time, date or venue for personal hearing, and with no material showing that the taxpayer was heard before the order, the adjudication was vitiated. The Calcutta High Court therefore set aside the order passed under Section 73 and the consequential demand, and remitted the matter for fresh adjudication after complying with the hearing requirement.

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Issues: Whether the adjudication order and consequential demand under the GST law were liable to be set aside for want of opportunity of personal hearing before passing the adverse order.

Analysis: Section 75(4) of the Act makes it obligatory for the proper officer to afford an opportunity of hearing before passing an adverse order, irrespective of whether a request is made by the registered person. The show-cause notice and the impugned order did not demonstrate that any time, date or venue for personal hearing had been provided, and there was nothing on record to show that the petitioner had been heard before the order was passed. In these circumstances, the matter was fit to be remanded for fresh adjudication without entering into the other disputes raised.

Conclusion: The order passed under Section 73 and the consequential demand were set aside, and the matter was remitted to the proper officer for fresh decision after giving an opportunity of hearing.

Final Conclusion: The proceedings were reopened for reconsideration on merits after compliance with the hearing requirement under the GST law.

Ratio Decidendi: Where the statute mandates a pre-decisional hearing before an adverse order, failure to afford such hearing vitiates the adjudication and warrants remand for fresh disposal.

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