Order Date – 05 December 2023

Parties: M/s Technosys Security System Private Limited Vs Commissioner, Commercial Tax and Deputy Commissioner, State Tax

Facts –

• The Petitioner, M/s Technosys Security System Private Limited, was issued with a show cause notice determining an amount as tax to be payable. The petitioner filed a reply to the show cause notice and final order was passed without providing opportunity of hearing.
• It was submitted by the respondent that the petitioner was required to opt for ‘personal hearing’ which was admittedly not opted and in that event, no fault can be found in the action of the respondents.

Issue –

• Whether the opportunity of hearing is mandatory?

Order –

• The Divisional Bench of Hon’ble High Court observed that in the instant case whether or not the petitioners have specifically asked for personal hearing, fact remains that the adverse decision was contemplated against the petitioners.
• It was obligatory and mandatory on the part of respondents to provide the petitioners opportunity of personal hearing. Admittedly, no opportunity of personal hearing has been provided in both the matters. Resultantly, the decision making process adopted by the respondents is vitiated and runs contrary to the principles of natural justice and statutory requirement of sub-section 4 of Section 75 of GST Act.
• Hence the impugned proceedings after the stage of reply of show cause notices, in both the cases are set-aside and the writ petitions disposed of.