Personal hearing under GST is mandatory when requested; order set aside for breach of Section 75(4) and natural justice.

The Madhya Pradesh HC held that a GST adjudication order could not stand where the taxpayer had requested a personal hearing but the final order was passed without one. Section 75(4) requires an opportunity of hearing when a written request is made by the person chargeable with tax or penalty, or when an adverse decision is contemplated. Because the decision-making process ignored that statutory mandate and the principles of natural justice, the order was set aside and the matter was remanded for reconsideration after affording a hearing before a different competent officer.

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Issues: Whether the impugned GST adjudication order was liable to be set aside for want of an opportunity of personal hearing in terms of Section 75(4) of the Central Goods and Services Tax Act, 2017.

Analysis: Section 75(4) mandates an opportunity of hearing where a written request is made by the person chargeable with tax or penalty, or where an adverse decision is contemplated. The petitioner had sought a personal hearing, yet the final order was passed without affording one. In these circumstances, the decision-making process was contrary to the statutory requirement and the principles of natural justice.

Conclusion: The impugned order was set aside and the matter was directed to be reconsidered after granting an opportunity of hearing before a different competent officer.

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