Personal Hearing was not granted even after requesting for the same – Order Set Aside

Citation:

Tvl. Town & City Developers Vs. State Tax Officer (Intelligence)

W.P. Nos. 11579, 11591 & 11595 of 2024 – High Court of Madras

[2024] 163 taxmann.com 547 (Madras)

Issue Involved:

Order-in-Original exceeded jurisdiction by applying GST at 5% instead of 1% merely on the allegation of non-compliance with Notification No.3/2019 – Central Tax (Rate) dated 29.03.2019. Personal Hearing was not granted in spite of requesting for the same in the Reply to the Show Cause Notice.

Other Grounds of Appeal:

1. Essential Ingredients for invoking Section 74 are not contained in the Show Cause Notice.
2. Impugned Order does not make reference to the petitioner’s replies (This ground was not sustained)

Held:

Order Set aside subject to the petitioner making 5% of tax disputed within two weeks.

Provisions relating to Personal Hearing: Section 75 – General Provisions relating to Determination of Tax:

75(4) – 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.

75(5) – The proper officer shall, if sufficient cause is shown by the person chargeable with tax, grant time to the said person and adjourn the hearing for reasons to be recorded in writing:

Provided that no such adjournment shall be granted for more than three times to a person during the proceedings.