HC Set Aside Order Passed Without Hearing Due to “NA” in the “Date of Personal Hearing” Column of the Notice

Case Details: Mohini Traders v. State of U.P. - [2023] 151 taxmann.com 507 (Allahabad)

Judiciary and Counsel Details

• • Pritinker Diwaker, CJ. & Saumitra Dayal Singh, J.
  • Vishwjit for the Petitioner.
  • C.S.C. for the Respondent.

Facts of the Case

The department issued a notice was issued to petitioner seeking reply within 30 days and the order was passed on determining the liability. As per the notice, the Assessing Authority had at that stage itself chosen to not give any opportunity of hearing to the assessee by mentioning “NA” against column description “Date of personal hearing”.

Therefore, the petitioner filed writ petition and submitted that no opportunity of oral hearing was given but the Assessing Authority was bound under section 75(4) of CGST Act, 2017 to afford opportunity of personal hearing before passing an adverse assessment order.

High Court Held

The Honorable High Court noted that the petitioner was denied opportunity of hearing because he had tick marked the option ‘No’ against the option for personal hearing in the reply to the show-cause-notice. However, this fact would have no legal consequence since it has been laid down by way of a principle of law that assessee is not required to request for “opportunity of personal hearing” and it remains mandatory upon the Assessing Authority to afford such opportunity before passing an adverse order.

The Court further noted that not only such opportunity would ensure observance of rules of natural of justice but it would also allow the authority to pass appropriate and reasoned order as may serve the interest of justice and allow a better appreciation to arise at the next/appeal stage, if required. Thus, it was held that the impugned was liable to be set aside and petition was allowed.