Order date – 15 December 2022

Key pointers –

• This petitioner, Paras Industrial Sales is directed against the assessment order dated 06.09.2022 as rectified on 13.9.2022 passed by respondent under Section 74 of CGST Act, 2017.
• The issue for consideration has been raised by the learned counsel for the petitioner is that on receipt of the show cause notice dated 17.12.2021, a reply dated 23.12.2021 was submitted by the petitioner and in the documents uploaded in Form GST DRC 06, the petitioner opted for personal hearing by tick marking the relevant column. However, the date, time and venue of the personal hearing was not intimated to the petitioner before passing the order impugned.
• As per section 75(4), it is evident that opportunity of hearing has to be granted by the authority under the said Act where either a request is received from the person chargeable with tax or penalty for opportunity of hearing or where any adverse decision is contemplated against such person.
• In view of the legislative mandate, in case of non-affording of opportunity of hearing by the assessee by intimating him the date, time and venue for personal hearing, the assessment order was found to be in violation of the principles of natural justice.
• The Court did not find any substance in the stand of the revenue that since the petitioner did not submit any reply to the first notice dated 27.8.2022, no further time should have been granted to him, moreover, when the Petitioner submitted a reply dated 23.12.2021 opting for personal hearing. 
• The element of principles of natural justice incorporated in the statutory provisions cast a mandate on the statutory authority to follow the procedure for finalization of its action. The assessment order dated 06.09.2022 as rectified on 13.9.2022 is, thus, found to be illegal being in contravention of provisions of Section 75(4) of the Act, 2017 and is hereby set-aside.
• The petitioner is also directed to cooperate in the proceedings and remain present before the competent officer on the date, time and venue intimated to him.
• The petitioner is allowed.