Bombay HC: Order Without Personal Hearing Violates GST Section 75(4)

The matter of Hydro Pneumatic Accessories India Pvt. Ltd. vs Assistant Commissioner of State Tax, heard by the Bombay High Court, stated crucial aspects of procedural fairness and natural justice in administrative proceedings.

The blog discusses a comprehensive analysis of the decision, analyzing the implications of the findings of the court on the rights of the applicant and the tax liabilities of authorities.

Detailed Analysis in Case of Hydro Pneumatic Accessories India Pvt. Ltd

The major fact of the matter is in the alleged discrepancies in the returns filed by Hydro Pneumatic Accessories India Pvt. Ltd., a manufacturer of hydro pneumatic valve, instrumentation, and fitting.

From the High Court, the applicant asks for relief, challenging the SCN and following the order passed via the Assistant Commissioner of State Tax u/s 73 of the Central Goods and Services Tax Act. The applicant argued that the order was issued without affording them a personal hearing, in violation of Section 75(4) of the CGST Act.

The analysis of the court is toward numerous aspects of procedural fairness. It outlines the applicants repeated requests for information regarding parameters 70 and 73, important for them to address the alleged differences. The tax council even after such requests losses to furnish the needed data, representing the circumstances where the applicant was not able to answer the allegations.

The court came to know that the contradictory sort of the impugned order which asserted that no response was furnished via the applicant and on the other side it quoted that the documents furnished were not enough. The sort of inconsistency asked questions about the virtue of the procedure of the assessment along with the sufficiency of the causes furnished for the asked demand.

The High Court under such observations concluded that the impugned order breaches the principles of natural justice. It outlines the need to afford the personal hearing to the applicant before passing an adverse order and opposing the GST council for their negligence in furnishing the important data even after reiterated requests.

Closure: As a reminder of the importance of procedural fairness in administrative proceedings is been served through the judgment in Hydro Pneumatic Accessories India Pvt. Ltd. vs Assistant Commissioner of State Tax.

The examination of the court shows the liability of the tax authorities to comply with the principles of natural justice, assuring that assesses are provided a fair chance to present their case.

The High Court quashed the impugned order rendered the tax council to provide the important information, and reaffirmed the importance of clarity and due functioning in upholding the statute of law.