Allahabad HC quashes order creating demand of GST, Interest, and Penalty as no opportunity of hearing granted to Assessee

08-Feb-2022 Admin 3 GST, Central Goods And Services Tax, CGST, Goods And Services Tax 259 Views

The Allahabad High Court has quashed the order creating demand of GST, interest, and penalty as no opportunity of hearing granted to Assessee.

The petitioner submits that the impugned assessment order creating demand of tax, interest, and penalty, has been passed without affording the opportunity of hearing contemplated in Section 75(4) of the Central Goods and Services Tax, 2017/ U.P. Goods and Services Tax, 2017 and thus, the impugned order being patently in breach of principles of natural justice, is unsustainable and deserves to be quashed.

Section 75(4) provides that 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 division bench of Justice Surya Prakash Kesarwani and Justice Jayant Banerji held that from the perusal of Section 75(4) of the Act, it is evident that opportunity of hearing has to be granted by authorities under the Act where either a request is received from the person chargeable with tax or penalty for the opportunity of hearing or where any adverse decision is contemplated against such person. Thus, it prima facie, appears that where an adverse decision is contemplated against the person, such a person even need not request for the opportunity of hearing and it appears to be mandatory for the authority concerned to afford the opportunity of hearing before passing an order adverse to such person.

“Considering the facts and circumstances of the case as briefly noted above, as an interim measure, it is provided that no coercive action shall be taken against the petitioner pursuant to the demand created under the impugned order till the next date fixed,” the court said.

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