Mandatory personal hearing under GST law vitiates adverse assessment when denied despite a written request.

The Madhya Pradesh HC held that Section 75(4) of the GST Act mandates a personal hearing where a written request is made or an adverse decision is contemplated. Because the petitioner had sought a hearing and no opportunity was given before an adverse tax determination, the assessment process breached both the statutory requirement and the principles of natural justice. The impugned assessment order was therefore vitiated and set aside, and the matter was remitted for fresh adjudication after granting a personal hearing.

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Issues: Whether the impugned GST assessment order was liable to be quashed for failure to afford the petitioner a personal hearing as mandated by Section 75(4) of the Madhya Pradesh Goods and Services Tax Act, 2017.

Analysis: Section 75(4) requires an opportunity of hearing where a written request is made or where an adverse decision is contemplated. The provision is mandatory and operates in addition to the settled principle of audi alteram partem. On the facts, an adverse determination was contemplated and no personal hearing was afforded despite the petitioner's request. The absence of such hearing rendered the decision-making process contrary to the statutory mandate and the principles of natural justice.

Conclusion: The impugned order was vitiated for breach of Section 75(4) and natural justice, and the challenge succeeded.

Final Conclusion: The assessment order was set aside and the matter was sent back for fresh adjudication after granting an opportunity of personal hearing.

Ratio Decidendi: Where the statute mandates a hearing before adverse tax adjudication, denial of such hearing vitiates the assessment and warrants fresh decision-making after compliance with the statutory requirement.

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