Matter Was Remanded as Assessee Was Not Given Hearing Opportunity Due to SCN Sent to Wrong Email ID | HC

Case Details: Bhagirath Infra Projects (AP) (P.) Ltd. vs. Assistant Commissioner of Central Tax - [2025] 171 taxmann.com 103 (Andhra Pradesh)

Judiciary and Counsel Details

• R. Raghunandan Rao & Maheswara Rao Kuncheam, JJ.
• A. Sarveswar Rao for the Petitioner.
• Santhi Chandra, Sr. Standing Counsel & J.U.M.V. Prasad, Central Government Counsel for the Respondent.

Facts of the Case

The petitioner, engaged in the business of executing road works, bridge construction, and irrigation projects, was issued a show cause notice demanding tax on turnover reported in income tax returns for specific financial years. Subsequently, an assessment order was issued without affording the petitioner a personal hearing. The petitioner contended that the absence of a personal hearing prejudiced his case, particularly in the context of the exemption claimed under a relevant notification. The Revenue asserted that notice had been duly served via email and post. However, it was demonstrated that the email ID used did not belong to the petitioner, and the postal notices were returned unserved. Consequently, the petitioner challenged the assessment before the High Court, seeking relief on grounds of violation of natural justice.

High Court Held

The Hon’ble High Court noted that the impugned assessment order, issued without a validly served notice of personal hearing, violated the principles of natural justice. The Court also observed that procedural fairness necessitates proper service of notice and an opportunity for the petitioner to present his case before an adverse order is passed. Accordingly, the Court set aside the assessment order and directed the Revenue to issue a fresh notice fixing a date for a personal hearing.