2026 (3) TMI 289

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....ssed ex-parte under Section 74 of the GST Act by the respondent no. 3 raising illegal demand of tax inclusive of penalty to the tune of Rs. 5,26,832/-. plus interest under Section 50(1) of the GST Act. 4. Apropo the facts of the case is that a show cause-cum- demand notice dated 19.05.2023 has been issued by the respondent no. 3 for the period from "July 2017 to March 2018" pertaining to financial year 2017-2018 in contravention to the provision of Section 74 of the said Act. 5. Prior to the issuance of the show cause-cum- demand notice, no notices in Form GST ASMT-10 has ever been issued as per Section 61 of the said Act, nor any adjournment has been granted to the petitioners by the respondent authorities, which thereby runs contrar....

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....the above intimation Show Cause Notice and Order dated 12th July, 2023 as quashed and set aside." (2) In the matter of : Goutam Bhowmik -vs. State of West Bengal, reported at (2024) 158 Taxmann.Com 399(Calcutta). Referring to Paragraphs 9 and 12, which are quoted below: " (9) From perusal of Section 75(4) of the Act, 2017 it is evident that opportunity of hearing has to be granted by authorities under the act, 2017 where either a request is received from the person chargeable with tax or penalty for opportunity of hearing or where any adverse decision is contemplated against such person. Thus, where an adverse decision is contemplated against the person, such a person even need not to request for opportunity of personal hearing ....

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....regularity. 13. It is mandatory upon the respondent authority to afford an opportunity of hearing to the petitioners by way of a reply to the show cause-cum- demand notice dated 19.05.2023. It is well settled proposition of law that an assessment order passed in haste, without considering the material evidence and reply, constitutes a gross violation of the principles of natural justice. 14. Having heard the parties on the basis of the available records I direct the petitioners to file a physical copy of the reply to the show cause-cum- demand notice dated 19.05.2023 before the respondent no. 3 within a period of 15 days and the same shall be duly considered by the respondent no. 3 preferably within a period of 3 months by passing a s....