Matter Remanded Back by High Court Where Hearing Opportunity Was Not Granted to Taxpayer

Case Details: Kloud Data Labs (P.) Ltd. v. Deputy Commissioner of State Tax - [2024] 165 taxmann.com 382 (Bombay)

Judiciary and Counsel Details

• Avinash G. Gharote & M.W. Chandwani, JJ.
• Abhishek Naik, Adv. for the Petitioner.
• I.J. Damle, AGP for the Respondent.

Facts of the Case

The petitioner was engaged in the business of providing services and its GST registration was cancelled. Thereafter, it received a notice for assessment under Section 73(9) read with Rule 142 of the CGST Act and the department passed an order under Section 73(9) and assessed the tax liability which includes interest and penalty. It filed writ petition and contended that the order was passed without granting an opportunity of hearing.

High Court Held

The Hon’ble High Court noted that the principles of natural justice were inbuilt in the statutory provisions itself and mandate an opportunity of hearing, either where a request in writing is received from the person chargeable with tax or penalty or where any adverse decision is contemplated against such person. In the instant case, the notice issued to assessee did not specify the date, time, or venue for a personal hearing, thus failing to comply with the statutory requirements under section 75(4). Therefore, the Court held that the impugned order was liable to be set aside and matter was to be remitted back to revenue.