In a significant case, the Allahabad High Court held that section 75(4) of Uttar Pradesh Goods and Service Tax Act is mandatory even if no demand in writing for hearing is made out. Therfore, the bench quashed the order passed without giving opportunity for hearing to the petitioner.
The writ petition was filed by the petitioner Swati Poly Industries Pvt Ltd on the order passed without giving opportunity for hearing.
Nishant Mishra, and Yashonidhi Shukla counsel for the petitioner submitted that the proceedings were initiated under Section 74 against the petitioner, the manner of decision making is specified under Sub-Section (4) of Section 75 of the U.P. GST Act, which specifically provides that an opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax for penalty or where an adverse decision is contemplated against such person.
Further, the counsel submitted that even if no demand in writing for hearing is made out, Section 75(4) makes it mandatory to grant opportunity of hearing where an adverse decision is contemplated.
The standing council for the state contended that the order dated 01.10.2020 also did not reveal that any personal hearing was accorded to the petitioner prior to passing of the order, as such, the inescapable conclusion from the material available on record is that petitioner was not granted personal hearing which is required and is mandatory under Section 75(4), as such, on that ground alone the order dated 01.10.2020 is quashed. The respondents should be at liberty to conclude the proceedings in accordance with law afresh, if so advised.
Thus, the single bench of Justice Pankaj Bhatia, allowed the appeal filed by the petitioner.
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