HC Set Aside Order Since No Hearing Given Despite Assessee Expressly Requested for Personal Hearing in Reply to Notice

Case Details: Tvl. Town & City Developers v. State Tax Officer (Intelligence) - [2024] 163 taxmann.com 547 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • S. Durairaj for the Petitioner.
  • C. Harsha Raj, AGP (T.) for the Respondent.

Facts of the Case

The petitioner was a developer and it had availed benefit of Notification No. 03/2019–Central Tax (Rate) dated 29-3-2019 and paid GST at 1%. The department issued intimation and show cause notice (SCN) and levied GST at 5% on the ground that it failed to provide evidence that the projects developed by the petitioner qualified as affordable housing projects. It filed writ petition and contended that it had expressly requested for a personal hearing in reply to notice but personal hearing was not granted.

High Court Held

The Honorable High Court noted that the impugned order was preceded by both an intimation and a show cause notice and assessee’s replies were also taken into consideration. However, it was evident from the petitioner’s final reply that the petitioner requested for a personal hearing but the same was not granted. Therefore, the Court held that the impugned order was liable to be set aside and the department was directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue fresh orders.