In an order favoring assessee, a division bench of the Gujarat High Court has quashed an order raising GST demand without granting personal hearing to the assessee and directed the department to issue a physical notice apart from the notice reflected on the GST portal.
Justice Sonia Gokani and Justice Sandeep N. Bhatt was hearing a petition by the assessee, M/S Eagle Fibres Limited wherein the petitioner received a show cause notice in Form GST DRC-01 on 14.02.2022 and uploaded on the GST portal. No hard copy of the show cause notice was served upon the petitioner. The excise clerk of the factory was on leave for 30 days and after his return, he found that show case notice has been served on portal and forwarded the same to the learned advocate who was to prepare the reply. In the meantime, the GST department passed an order in Form GST DRC-07 on 14.04.2022.
The petitioner alleged that the personal hearing had not been granted in the instant case. It is an ex-parte order in Form GST DRC-07 passed on 14.04.2022 by making the addition of huge amount of tax, interest and penalty of Rs. 2.40 crores.
Relying on a catena of decisions, the High Court allowed the petition and quashed and set aside the impugned order of assessment with all consequential proceedings.
“Rule is made absolute to the aforesaid extent. The respondent is at liberty to initiate the proceedings from the stage where it had been left, by affording reasonable opportunity of hearing to the petitioner on intimating him even physically. We noticed that it is only through portal that the assessee is being served. Let the service be also effected physically through RPAD and thereafter, affording the reasonable opportunity, the order shall be passed in accordance with law,” the High Court said.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
