Order without giving an opportunity of personal hearing is against natural justice: HC

Case Details: Bharat Mint and Allied Chemicals v. Commissioner of Commercial Tax - [2022] 136 taxmann.com 275 (Allahabad)

Judiciary and Counsel Details

• • Surya Prakash Kesarwani and Jayant Banerji, JJ.
  • Abhinav Mehrotra and Satya Vrata Mehrotra for the Petitioner. 
  • C.S.C. and A.S.G.I. for the Respondent.

Facts of the Case

The petitioner filed writ petition against the assessment order and submitted that the impugned assessment order creating demand of tax, interest and penalty, were passed without affording opportunity of hearing contemplated in Section 75(4) of CGST Act, 2017. The department argued that petitioner has an alternative remedy of appeal under Section 107 of the CGST Act, 2017 and writ petition should be dismissed.

High Court Held

The Honourable High Court observed that where an adverse decision is contemplated, such a person need not even request for opportunity of personal hearing as it is mandatory for authority to afford an opportunity of personal hearing as per Section 75(4). However, the perusal of photostat copy of adjudication order shows that opportunity of hearing was not provided. Moreover, the availability of alternate remedy would not be a complete bar to entertain writ petition where there shall be a gross violation of principles of natural justice. Therefore, it was held that department would have to pass order afresh after giving personal hearing and impugned order would be set aside.