Matter to be Remanded to Pass Orders Afresh Since No Hearing Was Accorded to Assessee | HC

Case Details: Party Time Hospitality v. State of U.P. - [2023] 154 taxmann.com 85 (Allahabad)

Judiciary and Counsel Details

• • Pankaj Bhatia, J.
  • Pradeep Agrawal for the Petitioner.
  • C.S.C. for the Respondent.

Facts of the Case

In the present case, the petitioner had taken a party lawn for running same in terms of a lease deed executed in its favour on 1-8-2018. The department issued a show cause notice on 28-9-2021 indicating amount which petitioner was required to pay but no date of personal hearing, time of personal hearing or venue of persona hearing was disclosed.

The petitioner did not file reply to said show cause notice and an order was passed against petitioner quantifying demand of tax and penalty for period July, 2017 to March, 2018. It filed appeal but the same was dismissed. Thereafter, it filed writ petition and contended that order was passed without providing hearing opportunity.

High Court Held

The Honorable High Court noted that the summary of the show cause notice failed to demonstrate as to what part of fraud, misrepresentation or wilful misstatement was alleged against the petitioner. Admittedly, in the instant case, no hearing had been accorded to petitioner, which is contrary to mandate of law prescribed under section 75(4) of CGST Act, 2017. Therefore, matter was to be remanded to department to pass orders afresh and principles of natural justice have to be complied with.

List of Cases Reviewed

• • Mohit Traders v. State of U.P. [2023] 151 taxmann.com 507/98 GST 818/2023 (75) G.S.T.L. 460 (All.) (para 10)
  • Lari Almirah House v. State of U.P. [2023] 149 taxmann.com 476/98 GST 414/2023 (74) GSTL 434 (All.) (para 10)
  • Bharat Mint & Allied Chemicals v. Commissioner of Commercial Tax [2022] 136 taxmann.com 275/2022 (59) G.S.T.L. 394/[2022] 92 GST 61 (All.) (para 10) followed.

List of Cases Referred to

• • Mohit Traders v. State of U.P. [2023] 151 taxmann.com 507/98 GST 818/2023 (75) G.S.T.L. 460 (All.) (para 6)
  • Lari Almirah House v. State of U.P. [2023] 149 taxmann.com 476/98 GST 414/2023 (74) GSTL 434 (All.) (para 6)
  • Bharat Mint & Allied Chemicals v. Commissioner of Commercial Tax [2022] 136 taxmann.com 275/2022 (59) G.S.T.L. 394/[2022] 92 GST 61 (All.) (para 7)