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PANKAJ BHATIA
Sumit Enterprises Office – Appellant
Versus
State of U. P. – Respondent
JUDGMENT
Pankaj Bhatia, J.
Heard Shri Pranjal Shukla, learned counsel for the petitioner, learned Standing Counsel and perused the records produced by learned Standing Counsel in terms of the order passed by this Court on 03.10.2023.
2. By means of the present petition, the petitioner has challenged the order dated 29.03.2023 whereby the appeal preferred by the petitioner under Section 107 of GST Act was dismissed as being beyond limitation.
The petitioner has also challenged the order dated 15.03.2022 passed by respondent no.3 whereby a demand has been created under Section of 74 of GST Act.
3. Submission of learned counsel for the petitioner is that the petitioner is a bonafide firm doing its business in accordance with law and had by mistake availed ITC but the same was not utilized. As the mistake was bonafide, the petitioner filed corrected return in the month of July, 2019. It is stated that despite the said, a notice was served under Section 74 of GST Act on 25.06.2021 wherein a proposed liability of Rs.1,48,160/- was sought to be levied and collected from the petitioner. The said show-cause notice also was based upon a survey conducted on 27.04.2019.
4. It is stated that
The court emphasized the mandatory requirement of granting a hearing under Section 75(4) of the GST Act before making any adverse decisions.
Compliance with Section 75(4) of the GST Act is essential to ensure fair hearing and upholds principles of natural justice in administrative proceedings.
A statutory obligation exists to provide an opportunity for personal hearing before passing adverse orders under the GST framework, regardless of the applicant's request.
The absence of a meaningful personal hearing, required under Section 75(4) of the GST Act, constitutes a violation of natural justice, necessitating the quashing of the impugned order.
The court ruled that personal hearing rights depend on a formal request by the assessee, and decisions on limitation for appeals under special statutes cannot be easily extended without valid justifi....
Procedural errors that violate natural justice, such as scheduling personal hearings before submission deadlines, render tax assessments invalid.
Procedural fairness is mandatory in administrative decisions, and failure to provide a hearing as required by statute invalidates adverse orders.
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