HC Quashes GST Order for Skipping Personal Hearing: Section 75(4) Breach Proves Fatal

HC Quashes GST Order for Skipping Personal Hearing: Section 75(4) Breach Proves Fatal

M/s Skinet 3 Broadband, registered under the U.P. GST Act, challenged an assessment order passed under Section 73. The show cause notice invited a written reply, but marked “NA” against the columns for date, time and venue of personal hearing.

No oral hearing was proposed or granted before passing the adverse order, a fact not disputed by the Revenue.

Issue Raised: Whether passing an assessment order without granting a personal hearing, by marking “NA” in the show cause notice, violates Section 75(4) of the U.P. GST Act and principles of natural justice.

HC’s Order: The Hon’ble High Court allowed the writ petition, holding that Section 75(4) of the U.P. GST Act mandates grant of a personal hearing before passing any adverse order. The Court clarified that the statute provides two independent safeguards and denial of one cannot be cured by allowing the other.

It was held that merely calling for a written reply does not satisfy the statutory requirement. By recording “NA” against the personal hearing details, the authorities had effectively denied the petitioner its legal right to be heard, rendering the proceedings invalid.

Therefore, the assessment order was set aside, and the matter was remanded to the assessing authority. The petitioner was permitted to file a final reply within two weeks, followed by a grant of a personal hearing and the passing of a fresh reasoned order in accordance with law.

To Read Full Judgment, Download PDF Given Below