2024 (3) TMI 784

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.... and Services Tax Act, 2017 (hereinafter referred to as the 'Act') and the subsequent order passed in appeal dated January 16, 2023 by the respondent no.2. 3. Mr. Agarwal, learned counsel appearing on behalf of petitioner submits that the order under Section 74 of the Act was passed without granting any opportunity of hearing to the petitioner, and accordingly, there has been violation of principles of natural justice. He submits that this ground was taken up in appeal, but the same was rejected by the Appellate Authority. He relied upon a judgement of this Court penned by Mr. Justice Pankaj Bhatia in M/s Daimond Steel Vs. State of U.P. and 3 others reported in (2023 U.P.T.C. [Vol.114]-960) wherein upon a detailed examination of Se....

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....and levying the penalty by taking recourse to some guidelines issued by the Income Tax Authorities which is impermissible while determining the tax liability under Section 74. The order of the appellate authority is even further bad in law as it discloses no reason, whatsoever for assessing the tax and quantifying the liability. While on the one hand, the appellate authority disapproved the manner in which the adjudicating authority had assessed and quantified the demand of tax and penalty, in the same breath, he proceeds to quantify the tax and imposed penalty without disclosing any reasons whatsoever. 16. On the perusal of the adjudicating authority's order as well as the appellate order, the manner in which the demand has been rais....

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....ersonal hearing. By incorporating "or'' into the statutory language, lawmakers explicitly delineate two distinct scenarios in which the opportunity of personal hearing must be afforded: either upon application by the individual subject to penalty or tax imposition, or in the event of contemplation of an adverse order. Personal hearing represents a fundamental aspect of procedural fairness and natural justice, ensuring that individuals have the opportunity to present their case, respond to allegations, and address any concerns or mitigating factors directly to the decision-maker. It is a vital safeguard against arbitrary or unjust decisions. The inclusion of "or'' in Section 75(4) of the UPGST Act, 2017, emphasizes the dual n....