In the significant case, the Orissa High Court held that personal hearing could not be denied to taxpayers on grounds of mere mentioning “No” in GST DRC-06. Hence the court directed the adjudication authority for rehearing the issue.
Arati Behera is the petitioner who filed the writ petition seeking to quash the order passed under Section 73 of the Odisha Goods & Services Tax Act, 2017 without providing opportunity of hearing to assessee.
Harichandan, appearing on behalf of the petitioner contented that whenever an assessee is chargeable with tax and penalty and makes a request in writing for opportunity of hearing, such an opportunity should be granted to him as per sub-section (4) of Section 75 Odisha Goods & Services Tax Act.
Accordingly the petitioner-assessee filed an application under Rule 142 (4) of the OGST Rules, 2017 under Annexure-3 seeking 30 days’ time for submission of reply against Notice in Form GSTDRC-01.However without granting time respondent passed the order under Annexure-4.
Therefore, the order was arbitrarily unreasonable, contrary to provisions of law and has been passed without giving opportunity of hearing to the petitioner.
The statute specifically provides three opportunities to assessee to furnish his reply, but in the present case, no such compliance of the statute has been made by the authority concerned.
Sunil Mishra, standing counsel appearing for the revenue submitted that the petitioner asked for time for filing his reply, but in Form GSTDRC-06 at Sl. No.7 with regard to “option for personal hearing” he has put a tick mark in the ‘No’ column. Therefore, it assumed that the petitioner did not want to have a personal hearing.
The Division bench observed that for request for grant of time,at Sl. No. 7, in the “option for personal hearing”, though the petitioner put a tick mark in the ‘No’ column, but that is meant for that time petition itself.
Therefore, once the petitioner is asking for time, there is no need for mentioning of any personal hearing in the petition under Annexure-3.
Moreover, when the request is made for grant of 30 days’ time as per application dated 29.04.2023 under Annexure-3, the order under Section 73 has been passed on 24.05.2023 under Annexure-4, which is before expiry of the 30 days’ period.
After reviewing the facts and submissions of the both parties, a division bench of Justice B.R. Sarangi and Justice Murahari Sri Raman quashed the order passed under Section 73 of the Odisha Goods & Services Tax Act and directed the authority to give opportunity of hearing to the petitioner in conformity with the provisions of law.
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