M/S Goswami Security Service Private Limited vs. The State Of Bihar

Held

The Court allowed the writ application in part. It held that the Adjudicating Authority had failed to provide the petitioner with a personal hearing as required by Section 75(4) of the CGST Act, 2017. Consequently, the order of assessment dated February 18, 2025, was set aside. The Court remitted the matter back to the Adjudicating Authority to pass a fresh order of assessment. This fresh order must be passed within a maximum period of two months from the date of the order, and the petitioner must be given an opportunity of hearing in terms of Section 75(4) of the CGST Act. The petitioner is directed to appear before the Adjudicating Authority with the court's order within a week, after which the authority shall fix a date for the personal hearing.

Facts

The petitioner, M/s Goswami Security Service Private Limited, challenges a demand notice and an order of assessment dated February 18, 2025, passed by the Adjudicating Authority under Section 73(9) of the State Goods & Services Tax (SGST) Act. The petitioner's primary contention is that they were not afforded a personal hearing as mandated by Section 75(4) of the Central Goods & Services Tax (CGST) Act, 2017. The respondent, the State of Bihar, through its counsel, agreed that the matter could be remanded for a fresh order after granting the petitioner a personal hearing.

Key Issues

1. Whether the Adjudicating Authority erred in passing an order of assessment without providing a personal hearing to the petitioner, in contravention of Section 75(4) of the CGST Act, 2017? The petitioner argued that the order of assessment dated February 18, 2025, is invalid because it was passed without granting them a personal hearing, which is a mandatory procedural requirement under Section 75(4) of the CGST Act, 2017. The State conceded that the matter should be remanded to the Adjudicating Authority to pass a fresh order after providing the petitioner with an opportunity for a personal hearing.