Raymond Lifestyle Limited vs. Union Of INDIA
Held
The Court held that the assessment order and the order in Form GST DRC-07 dated 30.04.2024 were liable to be set aside due to a violation of the statutory mandate for a personal hearing under Section 75(4) of the GST enactments. The Court reasoned that the failure to provide a personal hearing is a procedural defect that renders the orders invalid. The ratio decidendi is that adherence to procedural fairness, including the right to be heard, is a fundamental requirement for the validity of tax assessments. Consequently, the Court set aside the impugned orders and remitted the matter back to the Assessing Officer. The petitioner was directed to appear before the Assessing Officer on 15.01.2025, or on an adjourned date. The Assessing Officer was directed to pass fresh orders within three months from the date of the judgment or within the remaining limitation period, whichever is later, after hearing the assessee.
Facts
Raymond Lifestyle Limited, the petitioner, filed a writ petition before the Patna High Court challenging an assessment order and an order in Form GST DRC-07 dated 30.04.2024, passed by the Assistant Commissioner of State Tax, South 2 Circle, Patna. The petitioner contended that the impugned orders were passed without granting a personal hearing as mandated by Section 75(4) of the GST enactments. The respondents included the Union of India, the Central Board of Indirect Taxes and Customs, the State of Bihar, and the Assistant Commissioner of State Tax. The Court noted that the contentions raised regarding limitation were already decided against the petitioner in a previous judgment.
Key Issues
1. Whether the assessment order and the order in Form GST DRC-07 dated 30.04.2024 are liable to be set aside for violation of the statutory mandate for a personal hearing under Section 75(4) of the GST enactments? Petitioner's Argument: The petitioner argued that the impugned orders were passed without affording them a personal hearing, which is a mandatory procedural requirement under Section 75(4) of the GST enactments. This violation vitiates the orders passed. Revenue's Argument: The judgment does not record any specific arguments made by the respondents on this issue. However, the Court's decision implies that the respondents did not successfully counter the petitioner's claim regarding the lack of a personal hearing.
Sections Cited
Section 75(4)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.11543 of 2024 ====================================================== Raymond Lifestyle Limited having its corporate office at SSO Building, Jekegram, Pokhran Road No. 1, Thane, Mumbai-400606 (erstwhile JK Helene Curtis Limited), a company registered under Companies Act, 1956 having its office at Gate No. 1, Aranya Agencies Pvt. Limited, Shalimar Cold Storage, Anisabad, Patna-800002, Bihar through its Authorised Signatory Shri Neeraj Kumar Sharma (Male, aged about 36 years), son of Late Mahesh Sharma, resident of H. No. 538, Ward No. 16 near Samonta Petrol Pump, Shiv Nagar, Jhalpo Road, Jhumri Telaiya, Koderma, Jharkhand-825409. ... ... Petitioner/s Versus
Union of India through the Secretary, Finance, North Block New Delhi- 110001
Central Board of Indirect Taxes and Customs through its Secretary having its office at 47 B, CBIC Department of Revenue, North Block, New Delhi- 110001. 3. State of Bihar through Commissioner of State Tax, Bihar, Patna having its office at Vikas Bhawan, Patna.
Asst. Commissioner of State Tax, South 2 Circle, Patna, Bihar. ... ... Respondent/s ============================
The judgment continues below.
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