Order Date – 09 January 2023

Parties: M/s Mahendra Sponge and Power Limited Vs Assistant Commissioner State Tax (SGST) Circle-9, Raipur, Civil Lines, Raipur

Facts – 

• The Petitioner, M/s Mahendra Sponge and Power Limited, was issued with a notice under Section 61 of GST Act, calling explanation upon the discrepancies found to which the petitioner did not reply, thereafter, show-cause notice under Section 73 of CGST/SGST along with the summary of show-cause notice dated 11.10.2021 was also issued.
• The demand was confirmed without granting the petitioner opportunity to be heard as per Section 75(4) of the Act of 2017.

Issue – 

• Whether there is violation of Section 75(4) of the Act of 2017?

Order – 

• The Hon’ble High Court held that if there is violation of principles of natural justice, alternative remedy is not an absolute bar. Irrespective of the fact as to whether the appellant had filed reply or not, it is evident that the appellant had prayed for a personal hearing, which was, admittedly, not granted to the appellant.
• Hence the order passed on 02.02.2022 passed by the respondent are set aside and quashed