Order Date – 14 November 2024

Parties: M/s Rays Power Infrastructure Private Limited Vs The Assistant Commissioner of Commercial Taxes, The Union of India, The State of Karnataka, The Commissioner of Commercial Taxes in Karnataka and The Government of India

Facts –

• The Petitioner, M/s Rays Power Infrastructure Private Limited, was served a show cause notice under Section 73 of the KGST Act, read with Section 50, Section 73(9) of the CGST Act and Rule 142(1)(a) of the CGST Rules.     
• The Petitioner vide its reply specifically requested for personal hearing. The Respondent without granting an opportunity of personal hearing has passed an order under Section 73(9) of the KGST Act and determined the tax, interest and penalty. Being aggrieved, the present writ petition is filed.

Issue –

• Whether the order passed Under Section 73(9) of the KGST Act, without granting an opportunity of hearing is valid?

Order –

• The Single Bench of Hon’ble High Court observed that the various contentions raised by the Petitioner in the reply notice have not even been considered and no order has been passed by the 1st Respondent with regard to the same.
• It is further relevant to note that the petitioner, in its reply has specifically sought for a personal hearing. Further, Section 75(4) of the KGST Act specifically stipulates that an opportunity of hearing shall be granted where a request is received in writing. It is not forthcoming from the order dated 08.12.2023 that a personal hearing has been afforded as sought for by the petitioner.
• Hence from a bare perusal of the order dated 08.12.2023 it is clear that the 1st Respondent has not applied its mind and the said order has been passed in a mechanical manner. The order is quashed and the writ petition is allowed in part with specific direction to grant an opportunity of hearing to the Petitioner and pass an appropriate order in accordance with law after hearing the petitioner and not mechanical orders as the impugned order dated 08.12.2023.