2025 (7) TMI 1446 - HC - GST

Order set aside for ignoring reply and personal hearing under Section 75(4) of GST Act; case remanded for fresh hearing

Tvl. Hameem Trading Company, Rep. by its Proprietor, Mr. Meera Hussain Versus The Assistant Commissioner (ST), Chennai

The HC set aside the impugned order passed without considering the petitioner's reply and without providing a personal hearing, violating Section 75(4) of ... Mismatch in IGST credit - IGST paid on imports was not auto-populated in GSTR-2A - impugned order passed without considering the reply filed by the petitioner and without providing an opportunity of personal hearing - violation of principles of natural justice - HELD THAT:- In the case on hand, initially the show cause notice dated 21.05.2024 came to be issued by the respondent. Subsequently, the petitioner has filed a reply dated 20.06.2024 to the said show cause notice. However without considering the same, the respondent passed the impugned order dated 12.08.2024. Further, it was contended by the petitioner that no opportunity of personal hearing was provided to them prior to the passing of impugned order. Normally, if the respondent is intend to pass any adverse order against the Assessee, under Section 75(4) of the GST Act, 2017, it is mandatory for them to provide an opportunity of personal hearing prior to the passing of impugned order. However, in this case, no such opportunity of personal hearing was provided to the petitioner and thus, it is clear that the impugned order came to be passed not only in contrary to the provisions of Section 75(4) of the GST Act but also in violation of principles of natural justice and hence, the said order is liable to be set aside. The impugned order dated 12.08.2024 is set aside and the matter is remanded to the respondent for fresh consideration - Petition disposed off by way of remand. 1. ISSUES: 1. Whether the impugned order was passed without considering the petitioner's detailed reply and supporting documents addressing the alleged mismatch in IGST credit.2. Whether the respondent was obligated under Section 75(4) of the GST Act, 2017 to provide an opportunity of personal hearing before passing the adverse order.3. Whether the impugned order violated the principles of natural justice by denying the petitioner a personal hearing. 2. RULINGS / HOLDINGS: 1. The court held that the impugned order was passed without considering the petitioner's reply dated 20.06.2024 and supporting documents, which explained that the mismatch was purely technical and not indicative of any ineligible credit.2. It was held that under Section 75(4) of the GST Act, 2017, it is mandatory to provide an opportunity of personal hearing before passing any adverse order against the assessee.3. The impugned order was passed in violation of the principles of natural justice and Section 75(4) of the GST Act, 2017, as no personal hearing was granted to the petitioner; hence, the order is liable to be set aside. 3. RATIONALE: 1. The court applied the statutory mandate under Section 75(4) of the GST Act, 2017, which requires issuance of a personal hearing opportunity before passing an adverse order.2. The court emphasized adherence to the principles of natural justice, ensuring that an assessee is given a fair chance to present their case and documents prior to final adjudication.3. The court found that the failure to consider the petitioner's detailed reply and denial of personal hearing constituted procedural impropriety, warranting remand for fresh consideration.