Order date: 12 January,2023

Parties: M/s EAGLE FIBRES LIMITED VS STATE OF GUJRAT

Facts

• The Petitioner, M/s. Eagle Fibres Limited, is a manufacturer of polyester yarn. A show cause notice was issued in Form GST DRC-01 by the Respondent on 14.02.2022 and uploaded on the portal. No hard copy of the show cause notice was served upon the Petitioner. 
• Later, Petitioner after 30 days found that show case notice served on portal and forwarded the same to the learned advocate to prepare the reply. In the meantime, the respondent passed an order in Form GST DRC-07 on 14.04.2022 by making the addition of huge amount of tax, interest and penalty of Rs. 2.40 crores.
• Petitioner contended that mandatory opportunity of personal heard was not granted as required under Section 75(4) of the CGST/SGST Act, 2017.

Issue 

• Whether the Order passed without reasonable opportunity of personal hearing is valid?

Order

• The Court relied on the case of Graziano Trasmissioni India Pvt. Ltd. vs. State of Gujarat [2022(66) G.S.T.L. 38 (Guj.)] and Alkem Laboratories Ltd. vs. Union of India [2021(46) G.S.T.L. 113 (Guj.)] which provides to insist on providing the opportunity of personal hearing when any adverse decision is contemplated, even without any request for personal hearing on the part of the party concerned.
• It was held that Respondent is at liberty to initiate the proceedings from the stage where it had been left, by affording reasonable opportunity of hearing to the Petitioner on intimating him even physically.
• Further, the Court noticed that it is only through portal that the assessee is being served. Let the service be also affected physically through RPAD and thereafter, affording the reasonable opportunity, the order shall be passed in accordance with law
• Petition is disposed of accordingly.