Personal hearing under GST adjudication is mandatory where an adverse order is contemplated; denial vitiates the order.

An adjudication order under the Uttar Pradesh GST Act was held unsustainable because no personal hearing was afforded before the adverse decision. The noticee had replied to the show-cause notice, but no separate hearing notice was issued and no oral hearing opportunity was granted. Section 75(4) requires a hearing where an adverse order is contemplated, and that procedural safeguard must be complied with unless the right is waived or a granted hearing is not availed. As neither waiver nor non-availment was shown, the order was quashed.

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Issues: Whether an adjudication order passed under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 could be sustained when no personal hearing was afforded before passing the adverse order.

Analysis: The proceedings disclosed that the noticee had submitted replies to the show-cause notice, but no further notice for oral hearing was issued and no opportunity of personal hearing was granted before the adverse order was passed. Section 75(4) of the Uttar Pradesh Goods and Services Tax Act, 2017 mandates that an opportunity of hearing shall be granted where an adverse decision is contemplated. In tax adjudication, compliance with this procedural safeguard is essential, unless the assessee waives the right or fails to avail a hearing that has been granted. On the admitted facts, neither waiver nor failure to avail a granted hearing was shown.

Conclusion: The order passed under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 was unsustainable for breach of the requirement of personal hearing and was quashed.

Ratio Decidendi: Before passing an adverse adjudication order under the GST law, a personal hearing must be afforded where required by statute, and denial of that opportunity vitiates the order unless the right was waived or not availed after being granted.

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