Under Section 75(4) of the CGST Act, 2017, the revenue is statutorily obligated to provide an opportunity for a personal hearing before passing any adverse decision, and this right is not waived even if the assessee fails to submit a written response to the show cause notice.

DEEPAK SIBAL, J. (Oral)

1. Through this petition challenge is made to the order dated 05.09.2024 (Annexure P-2) on the ground that prior to passing of such order no opportunity of personal hearing was granted to the petitioner, which not only violates the principles of natural justice but also contravenes Section 75(4) of the Central Goods and Services Tax Act, 2017 (for short, ‘the 2017 Act’).

2. The facts which lie in the narrow compass are that the petitioner is a sole proprietorship concern engaged in the business of selling of car accessories in Jalandhar, Punjab. It is registered with the GST authorities in the State of Punjab. A show cause notice dated 03.05.2024, pertaining to the financial year 2022-23, was issued to the petitioner by the respondent- authorities under Section 74 of the 2017 Act, granting therein an opportunity to the petitioner to respond in writing to the allegations made therein. However, no date, time or venue for the grant of personal hearing was mentioned therein.

When, in response to the said show cause notice, the petitioner did not file any written response, adjudication order dated 05.09.2024 (Annexure P-2) was passed requiring the petitioner to deposit the tax demanded through it. The petitioner availed of its remedy of filing a statutory appeal to challenge therein the aforesaid adjudication order, which was dismissed on 13.02.2026 by the Deputy Commissioner State Tax (Appeal), Ludhiana Division, Ludhiana Camp Office at Jalandhar (hereinafter referred to as the ‘appellate authority’). It is at that stage that the petitioner has filed the instant petition seeking therein the aforesaid reliefs.

3. Learned counsel for the parties have been heard and with their able assistance the record of the case has also been perused.

4. The impugned show cause notice dated 03.05.2024 served upon the petitioner by the respondent–GST authorities, pertaining to the financial year 2022-23, is reproduced below for ready reference:-

Reference No.-ZD0305240081514 Date-03-05-2024

To GSTIN/ID: 03AALPA8946L1ZG Name: MADHU AGGARWAL

Address: SCO-25, PUDA COMPLEX, LADOWALI ROAD, JALANDHAR, Jalandhar, Punjab, 144001

Tax Period: OCT 2022-OCT 2022 F.Y. 2022-2023

Act/Rules Provisions- 74 Section/sub-section under which SCN is being issued-74

Summary of Show Cause Notice

(a) Brief Fact of the Case: Inspection (b) Grounds: Inspection (c) Tax and other dues:

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Show Cause Notice is attached.

Supporting documents attached by officer:

Raja Ram and Sons Distrubuter_Compressed.pdf: SCN Details of personal hearing and due date to file reply:

5. A perusal of the afore quoted show cause notice dated 03.05.2024 clearly reveals that against the column of date, time and venue for personal hearing “NA or not applicable” finds mentioned.

6. At this stage, Section 75(4) of the 2017 Act needs to be referred to. The same reads as follows:-

“An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.”

7. A perusal of the afore quoted provision leaves no room for doubt that before any adverse decision is even contemplated against an assessee under the 2017 Act, the respondent-revenue is under a statutory obligation t