Himachal Pradesh HC Sets Aside GST Order Passed Without Personal Hearing, Additional Advocate General Admits Dept’s Action Unsustainable [Read Order]

Chander Mukhi Resorts Private Limited approached the High Court challenging the summary of a show cause notice dated 02.12.2024 and the consequential summary order dated 18.01.2025, on the ground that the proceedings were conducted in gross violation of the principles of natural justice.

During the hearing, the respondent department appeared in person and tried to justify that the petitioner was afforded an opportunity of hearing before passing of the impugned order.

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However, the Court, after perusing the records, found that while some interaction took place before the issuance of the show cause notice, no personal hearing was granted at the subsequent crucial stage. Notably, during the proceedings held on 24.12.2024, the records produced by the petitioner were merely returned to its accountant, with no proper hearing afforded thereafter.

In addition, the Additional Advocate General appearing for the State conceded that the action of the department could not be sustained, as the petitioner was not provided proper hearing which is a right guaranteed under Section 75(4) of the HPGST Act.

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The bench comprising Justice Tarlok Singh Chauhan and Justice Sushil Kukreja allowed the writ petition. The impugned order dated 18.01.2025 was set aside with a direction that the petitioner be granted a proper personal hearing. The Court directed the petitioner to appear before the respondent authority with its reply and all relevant documents on 02.08.2025.

The Court further directed that all future proceedings shall be conducted only after providing the petitioner with an adequate opportunity to be heard and to place relevant material on record.

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