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✍️ Allahabad High Court Upholds Natural Justice in GST Proceedings, Mandates Personal Hearing even if no request is received from Assessee.
Facts of the Case 📜:
The petitioner, owner of a hotel providing banquet and garden services for marriages, faced a GST notice issued on March 25, 2021, for the period of December 2017.
The petitioner failed to respond, leading to an order and a demand notice by the respondent in July 2021.
The absence of a fixed date, time, and venue for a personal hearing led to the petitioner's appeal, which was partially allowed on December 16, 2022, by the Additional Commissioner. Despite some relief, the core issue of denied personal hearing remained unresolved.
Issue 🤔:
The contention revolved around the lack of a personal hearing for the petitioner, a right under section 75(4) of the UPGST Act, which mandates an opportunity for such a hearing in cases of adverse decisions.
Petitioner's Argument 🏛️:
The petitioner argued that the orders passed violated the principles of natural justice, particularly due to the failure to provide a personal hearing as mandated by the GST laws.
Respondent's Argument 🏢:
The respondent justified their actions by focusing on procedural aspects and the merits of the case, overlooking the statutory requirement for a personal hearing in the event of an adverse decision.
Court Judgment ⚖️:
Allahabad HC quashed the orders for violating the principles of natural justice, emphasizing the necessity of a personal hearing as per Section 75(4) of the UPGST Act. The petitioner was granted relief with directions for a fresh order after a personal hearing.
Title: Shree Sai Palace vs State of Uttar Pradesh
Court: Allahabad High Court
Citation: Writ Tax No. 50 of 2023
Dated: 21-Feb-2024
Impact Analysis 🌟:
This judgment reinforces the importance of adhering to procedural rights, ensuring fairness in administrative tax proceedings.