2026 (3) TMI 144 - HC - GST

Natural justice: failure to afford feasible personal hearing vitiates GST assessment; matter remanded for fresh consideration after hearing.

Assessment orders under the GST assessment provision were found to have been passed without affording a feasible personal hearing, engaging the rule of ... Violation of principles of natural justice for failure to afford personal hearing - remand for fresh consideration to afford personal hearing and consider reply. Violation of principles of natural justice for failure to afford personal hearing - Impugned assessment orders passed without affording personal hearing and in violation of principles of natural justice - HELD THAT: - The show cause notices were uploaded on the GST portal, and while the petitioner submitted replies in person, those replies were not uploaded to the portal. The assessing officer proceeded to pass the impugned orders on the basis that no reply was filed through the portal, without providing any opportunity of personal hearing. The Court concluded that the orders were passed in breach of the principles of natural justice because no personal hearing was afforded before passing the assessment orders. Having noted that the petitioner has deposited 25% of the disputed tax as directed earlier, the Court found it appropriate to set aside the impugned orders and remit the matter for fresh consideration so that the petitioner may file his reply/objections and be afforded a personal hearing before fresh adjudication on merits. [Paras 7, 8] Impugned orders set aside; matter remanded to the assessing officer to permit filing of reply/objections within two weeks and to issue a clear 14-day notice fixing date of personal hearing, and thereafter decide the matter on merits in accordance with law. Final Conclusion: The impugned assessment orders for 2017-18 and 2018-19 were set aside for denial of personal hearing; the matter is remitted for fresh consideration after the petitioner files reply/objections and is afforded a personal hearing, following which the assessing officer shall pass appropriate orders on merits. Issues: Whether the assessment orders dated 08.01.2024 and 29.04.2024, passed under Section 74 of the TNGST/CGST Act, 2017, without affording the petitioner a personal hearing and relying on absence of portal filing, are violative of principles of natural justice and liable to be set aside and remanded for fresh consideration.Analysis: The Court examined the procedural record and the submissions that show cause notices were uploaded on the GST portal and the petitioner had filed replies in person but did not upload them to the portal. The respondents conceded that no personal hearing was afforded prior to passing the impugned assessment orders. The Court applied the principle that an assessment order passed without giving an opportunity of personal hearing where one was feasible engages principles of natural justice. Given the admitted absence of personal hearing and the factual matrix of in-person replies, the Court found the orders to be vitiated for want of compliance with natural justice and requiring reconsideration on merits after affording opportunity of hearing.Conclusion: The impugned orders dated 08.01.2024 and 29.04.2024 are set aside and the matter is remanded to the 2nd respondent for fresh consideration with directions to permit the petitioner to file reply/objection within two weeks and to issue a 14 days clear notice fixing the date of personal hearing before passing appropriate orders on merits.