HC sets aside order where mandatory personal hearing was skipped

Case Details: Ultratech Cement Ltd. v. Union of India - [2023] 148 taxmann.com 246 (Madhya Pradesh)

Judiciary and Counsel Details

• • Sushrut Arvind Dharmadhikari & Prakash Chandra Gupta, JJ.
  • Bharat Raichandani & Ankit Premchandani for the Appellant. 
  • Umesh Gajankush, Ld. Addl. Adv. for the Respondent.

Facts of the Case

The petitioner filed writ petition against the adjudication order and contended that the order was passed without granting personal hearing. It was also submitted that the impugned order was an adverse decision against the petitioner and therefore, it was entitled for an opportunity of being heard.

High Court Held

The Honorable High Court noted that as per Section 75(4) of the CGST Act, 2017, personal hearing is mandatory before passing any adverse order against the assessee. In the instant case, the only reason assigned in the impugned order was that the reply filed by the petitioner was not acceptable, and no tax had been deposited by the petitioner. Therefore, the reply was rejected.

The Court noted that it was blatant cases of breach of principles of natural justice and total non-application of mind. Therefore, it was held that the order was liable to be set aside and matter was remanded for consideration before Assessing Officer other than one who had passed impugned order.