HC: GST Notice in DRC-01 Delivered Without Hearing is Invalid

A division bench of the Gujarat High Court refused the show-cause notices in form GST DRC-01 holding that it had been issued without expensing a personal hearing to the taxpayer.

Justice N.V.Anjaria and Justice Bhargav D. Karia acknowledge a petition furnished via M/S Hitech Sweet Water Technologies Pvt. Ltd, in which the applicant has obtained the three show-cause notices for the respective years in form GST DRC-01 on 13.03.2022 for the years 2017-18, 2018- 19, and 2019-20 and amount of Rs.5,46,79,672/-, Rs.2,33,65,984/- and Rs.1,35,60,109/-, was claimed through the applicant.

The applicant to the court, the order came to get passed in a gross violation of the principles of natural justice as the applicant was not been allotted the chance of getting heard. On distinct judgment, the applicant has trusted along with M/s. Alkem Laboratories ltd vs union contended that when the adverse order was issued without providing the chance of a personal hearing the same shall be refused.

Court’s articulation, no profit in specifying that the impugned order arrived to get passed excluding extending the chance of personal hearing of applicant. For the orders concerning three assessment years, the applicant was not being heard. It is correct that the answer in the mentioned form provided by the applicant in answer to the show cause notice the applicant has shown that he does not choose the personal hearing.

The court refused the impugned orders, on the basis of compliance with the principles of natural justice in the form of not providing the chance of getting a personal hearing along with the order that the competent council would able to decide a new under the statement of the learned AGP, the three impugned orders dated 19.04.2022 (Annexures-C-1 to C3 in the petition) which the respondent no 2 furnished would set aside. The competent council, the respondent would provide the chance of a personal hearing to the applicant in 3 weeks from the present time and issues as per the GST law, a new order in 2 weeks from the date of affording such personal hearing.