Delhi High Court Rules in Favor of Assessee: Personal Hearing Opportunity Required in GST Case

Delhi High Court Rules in Favor of Assessee: Personal Hearing Opportunity Required in GST Case

Introduction

The Hon’ble Delhi High Court, in the case of M/s. Shree Padma Industries v. Union of India [Writ Petition (Civil) No. 6274 of 2024 dated May 17, 2024], ruled that an opportunity for a personal hearing should be granted to the assessee. The court remitted the matter back to the authorities, emphasizing the importance of providing a fair chance to the petitioner to be heard in person.

Facts of the Case

M/s. Shree Padma Industries (“the Petitioner”) was served a Show Cause Notice dated September 29, 2023 (“the Impugned SCN”) in reference to FORM GSTR-01, stating that there was an excess claim of ITC under Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). The notice included Annexure-B, detailing the reasons under separate headings. The Proper Officer (“the Respondent”) demanded INR 9,04,200/- including the penalty in the Impugned SCN.

The Petitioner requested access to the tabular chart in Annexure B and activation of the GST Portal to file a reply. However, an order dated December 12, 2023 (“the Impugned Order”) was passed, disposing of the demand proposed in the Impugned SCN, stating that the Petitioner neither filed a reply nor appeared for the Personal Hearing despite reminders and opportunities provided through the GST portal.

Aggrieved by the Impugned Order, the Petitioner filed the present writ petition.

Issue

Whether an opportunity for a personal hearing should be granted to the Assessee?

Held

The Hon’ble Delhi High Court in Writ Petition (Civil) No. 6274 of 2024 held as follows:

Thus, the Impugned Order was set aside, and the matter was remitted back for reconsideration with an opportunity for the Petitioner to be heard in person.

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