Assessment order passed without hearing opportunity to be quashed for violating principles of natural justice: HC

Case Details: Sendhil Kumar v. State Tax Officer - [2023] 148 taxmann.com 394 (Madras)

Judiciary and Counsel Details

• • Abdul Quddhose, J.
  • N. Murali for the Petitioner.
  • Ms Amirtha Dinakaran, Adv. for the Respondent.

Facts of the Case

The petitioner filed writ petition to challenge the assessment order issued by the Adjudicating Authority on the ground that no personal hearing was afforded to the petitioner in the impugned assessment proceedings. It was contended that as per Section 75 (4) of the CGST Act, 2017, personal hearing ought to have been afforded to the petitioner since an adverse decision had been taken by the Authority.

High Court Held

The Honorable High Court noted that Section 75 (4) of CGST Act, 2017 specifically requires grant of hearing opportunity where adverse decision contemplated against assessee. In the instant case, the impugned order imposed tax liability as well as penalty on the petitioner. However, no personal hearing was afforded to petitioner in impugned assessment proceedings.

Therefore, it was held that the impugned assessment order was to be quashed on ground of violation of principles of natural justice and matter remanded for fresh consideration on merits and in accordance with law.