Opportunity of personal hearing to be provided even if request for personal hearing not made: HC

Case Details: Graziano Trasmissioni India (P.) Ltd. v. State of Gujarat - [2022] 143 taxmann.com 381 (Gujarat)

Judiciary and Counsel Details

• • Ms Sonia Gokani & Ms Gita Gopi, JJ.
  • Dharnendra Kumar Rana, Krishal H. Patel & Saurin A. Mehta for the Petitioner.
  • Trupesh Kathiriya, Advs. for the Respondent.

Facts of the Case

The petitioner was manufacturing automobile components and exported the goods outside India under Letter of Undertaking without payment of GST. It had reported the value of exports under GSTR-3B in the Column for nil rated / exempt supply and not in the Column for Zero-rated supply. The department SCN proposing demand of ITC along with interest and penalty and order was passed. It filed writ petition against the order.

High Court Held

The Honorable High Court observed that as per Section 75(4) of the CGST Act, 2017, an opportunity of hearing is to be provided where a request is received in writing from the person chargeable with tax or penalty or where any adverse decision is contemplated against such person. The department also submitted that opportunity of hearing was not granted since the same was not requested for. However, while so arguing, the provision of Section 75(4) has been missed out. Even without any request having been made when any adverse decision is contemplated, personal hearing is a must. Hence, the same was missing in the instant case and therefore, order was quashed only on the ground of non-availment of opportunity of personal hearing.