Statutory personal hearing and reasoned orders require fresh first-instance adjudication when duplicate e-way bill evidence remains disputed.
Requested personal hearings and reasoned orders are required where an adverse GST determination turns on disputed factual evidence. Denial of a post-reply hearing and failure to address explanations concerning duplicate e-way bills, a single supply, and alleged additional taxable transactions breach the requirements of Sections 75(4) and 75(6). Later appellate hearings do not automatically rectify that original-stage defect. Rule 138(9) does not create a new charge; failure to cancel an e-way bill is relevant but not conclusive of an additional supply. The dispute requires fresh adjudication confined to the existing notice, with primary records, a meaningful hearing, and a speaking order.
Issues: (i) Whether the original adjudication was vitiated by denial of the requested personal hearing and absence of adequate reasons; (ii) Whether subsequent appellate hearings cured the original procedural defects; (iii) Whether the cancellation mechanism under Rule 138(9) created a new charge or had evidentiary significance; and (iv) Whether the disputed demand required final merits determination or limited fresh adjudication.
Issue (i): Whether the original adjudication was vitiated by denial of the requested personal hearing and absence of adequate reasons.
Analysis: Section 75(4) requires a meaningful hearing where it is requested in writing or where an adverse decision is contemplated. Section 75(6) requires the order to state relevant facts and the basis of decision. The requested post-reply hearing was not afforded, and the order merely treated the explanation as unsatisfactory without addressing the asserted single supply, duplicate generation, or evidentiary basis for an additional taxable transaction. The statutory audi alteram partem requirement and duty to give reasons were therefore not met.
Conclusion: The original adjudication was vitiated by breach of Sections 75(4) and 75(6), in favour of the assessee.
Issue (ii): Whether subsequent appellate hearings cured the original procedural defects.
Analysis: A statutory hearing denied at the original adjudicatory stage is not automatically cured by hearings before appellate forums. The original-stage hearing was material because disputed factual questions required evaluation of the explanation, primary records, and departmental data by the proper officer in the first instance.
Conclusion: The subsequent hearings did not cure the original denial of statutory hearing, in favour of the assessee.
Issue (iii): Whether the cancellation mechanism under Rule 138(9) created a new charge or had evidentiary significance.
Analysis: The existing notice was founded on duplicate e-way bills against the same invoice and the alleged unpaid tax on an additional transaction. Rule 138(9) was relevant to assess the defence that one e-way bill did not represent actual movement; it did not introduce a new charge. Non-cancellation is a material circumstance, but does not alone establish an additional supply. The issue requires a cumulative assessment of evidence, including the burden of proof and any adverse inference arising from non-production of primary records.
Conclusion: Rule 138(9) does not create a new charge, and non-cancellation is relevant but not conclusive; the issue is partly against the assessee.
Issue (iv): Whether the disputed demand required final merits determination or limited fresh adjudication.
Analysis: Section 113(1) permits referral for fresh adjudication where necessary. The duplicate e-way bills, the unexplained invoice discrepancy, the asserted technical or clerical causes, and the absence of primary invoice, return, books, and transport records left disputed factual matters unresolved. The demand could neither be annulled solely on unsupported assertions nor sustained through appellate fact-finding in substitution of the denied original hearing.
Conclusion: Fresh adjudication confined to the existing notice, after production of relevant evidence, a meaningful personal hearing, and a reasoned speaking order, is required; this procedural relief is in favour of the assessee.
Final Conclusion: The impugned determination concerning the surviving transaction cannot stand without compliance with statutory hearing and reasoned-decision requirements; whether any additional taxable supply occurred remains open for determination on the evidence.
Ratio Decidendi: Denial of a requested statutory personal hearing and failure to give adequate reasons at the original adjudicatory stage are not automatically cured by later appellate hearings where disputed factual evidence requires first-instance determination.