Orders require a hearing even if a reply mistakenly stated that hearing was not required: HC

Case Details: Hitech Sweet Water Technologies (P.) Ltd. v. State of Gujarat - [2023] 147 taxmann.com 243 (Gujarat)

Judiciary and Counsel Details

• • N.V. Anjaria & Bhargav D. Karia, JJ.
  • Karankumar J. Sukawala & Mukund Kumar Chouhan for the Petitioner.

Facts of the Case

The petitioner was a manufacturer of water filter machines. It received three show-cause notices for the years 2017-18, 2018- 19 and 2019-20. The department passed assessment orders against the petitioner with respect of three years and the petitioner challenged the notices on the ground that the orders came to be passed in gross violation of principles of natural justice as opportunity of hearing was not granted.

High Court Held

The Honorable High Court noted that as per Section 75 of CGST Act, 2017, 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. The Court also noted that the petitioner, in response to show-cause notice, indicated that he did not opt for personal hearing.

However, in respect of the orders relating to three assessment years, it can’t be disputed that the petitioner was not heard. Therefore, only on the ground of non-compliance of principles of natural justice in form of not giving opportunity of personal hearing, the Court set aside the impugned orders and directed concerned Authority to give personal hearing after which matter would to be decided afresh.