Order date – 13 February 2023

Parties: Sendhil Kumar Vs The State Tax Officer, Chennai

Facts – 

• The Petitioner, Sendhil Kumar, was demanded tax liability under the CGST and SGST Rs.4,44,292/- and a penalty has been imposed, totalling a sum of Rs.8,88,584/-.
• The petitioner contends that as per Section 75 (4) of the GST Act,2017, personal hearing ought to have been afforded to the petitioner.
• Aggrieved, this petition is filed.

Issue –

• Whether personal opportunity of hearing is mandatory ?

Order –

• The Court relied on other judgements wherein it was held that a right of personal hearing to the assessee is mandatory whenever the respondent contemplates any adverse decision in the assessment proceedings.
• Admittedly, no personal hearing was afforded to the petitioner in the impugned assessment proceedings as seen from the impugned assessment order. An adverse decision has also been taken by the respondent against the petitioner in the impugned assessment order. 
• Therefore, necessarily the impugned assessment order has to be quashed on the ground of violation of the principles of natural justice as no personal hearing has been granted to the petitioner as contemplated under Section 75 (4) of the CGST Act and remanded back to the respondent for fresh consideration on merits and in accordance with law.