Order on basis of SCN which was issued without indicating the date of hearing liable to be set aside: HC

Case Details: GRT Hotels & Resorts (P.) Ltd. v. State of Andhra Pradesh - [2021] 129 taxmann.com 426 (Andhra Pradesh)

Judiciary and Counsel Details

• • A.V. Sesha Sai and Ms. J. Uma Devi, JJ.
  • Kailashnath P.S.S., Ld. Counsel for the Petitioner. 
  • T.C.D. Sekhar, ld. Govt. Pleader for the Respondent.

Facts of the Case

The Competent Authority issued on assessee show cause notice to explain why tax should not be imposed granting fifteen days time to file objections and arguments. The assessee did not file any objections within time stipulated. Thereafter, the Competent Authority passed an order under section 74 on assessee. The assessee challenged the order on the ground that an opportunity of hearing was not granted and filed writ petition.

High Court Held

The Honorable High Court observed that as per sub-section (4) of section 75 of the GST Act, an opportunity of hearing shall be granted 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. In the instant case, show cause notice was issued to submit objections but the notice of personal hearing, indicating the date of hearing was not served before resorting to the impugned action. Since, the mandatory requirement was not complied with, the Court held that petition was allowed and matter was required to be remanded to Competent Authority for fresh consideration.

Check out Taxmann's Live Webinar with CPC Income-Tax!

The 'One-of-a-Kind' – CPC Roundtable

Presentation | Interaction | Brain Storming

🗓️ 9th March 2022 (Wednesday) | 🕒 3:00 PM – 6:00 PM (IST)

👩‍💻👨‍💻 Register Now for FREE! (Limited Slots Available): https://taxmann.social/HxkX

💬 ASK from CPC

You can also raise your concern(s)/suggestion(s) with CPC regarding Registration, E-filing, Processing, Refund and Rectification related issues. CPC officers will take up the issues during the live event.

Coverage of the Webinar & the Speakers:

✔️ Welcome Address & Moderator| Mukesh Patel | International Tax Expert

✔️ Keynote Address | Dr Sibichen Mathew | Director of Income-tax | CPC-ITR