Mandatory personal hearing under GST law can invalidate a demand order where no opportunity is given before adverse decision.

Section 75(4) of the CGST Act requires a hearing not only on written request but also whenever an adverse decision is contemplated. The text records that no personal hearing was afforded before the demand order under Section 73 was passed, making the defect material and rendering the order unsustainable. A coordinate Bench view was followed, and the impugned demand order was quashed, with liberty to pass a fresh order in accordance with law after granting an opportunity of hearing.

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Issues: Whether an order of demand passed under Section 73 of the Central Goods and Services Tax Act, 2017 was liable to be quashed for want of opportunity of personal hearing under Section 75(4) of that Act.

Analysis: Section 75(4) mandates that an opportunity of hearing shall be granted not only when a written request is made by the person chargeable with tax or penalty, but also where any adverse decision is contemplated. On the facts recorded, no opportunity of hearing was afforded before passing the impugned demand order. The defect was treated as material, and the order was found unsustainable. The cited coordinate Bench view was followed.

Conclusion: The impugned demand order was quashed, and the matter was left open to the respondents to pass a fresh order in accordance with law after affording an opportunity of hearing.

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