Patna HC quashes GST Order for Denial of Post-Reply Hearing, directs to Comply with S. 75(4) Immediately [Read Order]

The Patna High Court quashed the GST ( Goods and Services Tax ) order issued without granting a personal hearing to the taxpayer after submission of a reply to the show cause notice.

The Division Bench comprising Justice Rajeev Ranjan Prasad and Justice Shailendra Singh ruled that the denial of post-reply hearing violated the mandatory requirements under Section 75(4) of the CGST/BGST Act, 2017.

The petitioner, Satguru Cattle Feeds had challenged the assessment order determining tax liability for FY 2017–18, contending that no opportunity for a personal hearing was afforded after filing a written reply to the show cause notice.

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Although the Department claimed that a hearing date had been indicated in the notice, the Court clarified that the statutory scheme under Section 75(4) necessitates that an assessing officer must first consider the taxpayer’s reply. Only if an adverse decision is contemplated thereafter should a personal hearing be provided either upon request or suo motu.

The Court stated that personal hearing is not discretionary where an adverse order is proposed. The bench found that the respondent authority failed to adhere to this requirement, thus, it set aside the impugned order.

The bench directed the petitioner to appear through an authorized representative within three weeks and instructed the assessing officer to fix a fresh hearing and conclude the proceedings within three months.

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