HC Sets Aside Order Confirming Demand as SCN Didn’t Specify Date, Time, and Venue for Personal Hearing

Case Details: Phuljhora Agro Plantation (P.) Ltd. v. Union of India - [2024] 166 taxmann.com 148 (Calcutta)

Judiciary and Counsel Details

• Kausik Chandra, J.
• Himangshu Kr. Ray, Subhasis Podder, Abhilash Mittal for the Petitioner.
• Subir Kumar Saha, Rima Sarkar for the Respondent.

Facts of the Case

In the present case, a show cause notice (SCN) was issued to the petitioner under Section 73 of the CGST Act, 2017, seeking a response within thirty days from the date of the notice. The petitioner failed to respond and the department issued an assessment order under Section 73(9) of the Act confirming a demand of Rs. 18,54,576/-. It filed writ petition against the assessment order and contended that it was not afforded a proper opportunity for a hearing by the authority.

High Court Held

The Honorable High Court noted that the SCN indicated that an opportunity for a hearing might be provided, however it failed to specify any date, time, or venue for the hearing. The assessment was based on a show cause notice denying the petitioner the right to a personal hearing. Therefore, the proceedings based on the defective show cause notice must go. Thus, it was held that the SCN as well as impugned order confirming demand was to be set aside.