M/S Nishant Enterprises (2017-2018) vs. The Union Of INDIA
Held
The Court held that the impugned assessment order dated 04.12.2023 and the consequential demand order dated 18.12.2023 were passed in violation of the statutory mandate for notice of personal hearing under Section 75(4) of the GST enactments. Consequently, these orders were set aside. The matter was remitted back to the Assessing Officer. The petitioner was directed to appear before the Assessing Officer on 19.12.2024. If the petitioner appeared on the notified date 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. The ratio decidendi is that failure to provide a mandatory personal hearing vitiates the order passed by the GST authorities.
Facts
The petitioner, M/s Nishant Enterprises, filed a writ petition before the Patna High Court challenging an assessment order dated 04.12.2023 and a consequential demand order dated 18.12.2023. The petitioner contended that these orders were passed without granting a personal hearing, violating Section 75(4) of the GST enactments. The respondents are the Union of India and various GST authorities. The judgment does not specify the tax period or the amount in dispute. The procedural history involves the filing of the writ petition challenging the impugned orders.
Key Issues
1. Whether the assessment order and consequential demand order passed by the Assessing Officer are liable to be set aside for violation of the statutory mandate of providing a personal hearing under Section 75(4) of the GST enactments? Petitioner's Contention: The petitioner argued that the impugned assessment order and demand order were passed in violation of Section 75(4) of the GST enactments, which mandates a personal hearing before passing an order that is adverse to the assessee. The petitioner relied on the principle that statutory provisions must be followed by the authorities. Revenue's Contention: The judgment does not record any specific contentions raised by the revenue or state regarding the issue of personal hearing. However, the court's decision implies that the revenue's position, if any, did not prevail on this point.
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.14016 of 2024 ====================================================== M/S Nishant Enterprises (2017-2018) GSTIN-10AGAPD0206H1ZL and its office at New Area, Kadam Kuan, Sri Harinarayan Sinha, South of Budh Murti, Kadamkuan, Post-Kadamkuan, P.S.-Kadamkuan, PATNA, Bihar- 800003 through its Proprietor Smt. Reena Devi, Gender-Female, aged about 52 years, wife of Sri Navin Kumar, Kannu Lal Road, Mithapur B Area, Post- G.P.O., P.S.-Jakkanpur, PATNA, Bihar-800001. ... ... Petitioner/s Versus
The Union of India through the Finance Secretary, Department of Revenue, Govt. of India, New Delhi.
The Government of India Ministry of Finance (Department of Revenue), through the Director, CBIC, New Delhi.
The Commissioner Central GST and Central Excise, Central Revenue Building, Birchand Patel Path, Patna.
The Superintendent of CGST and C-X, Gandhi Maidan Range, Ground Floor, Chandpur Palace, Opposite of Dadiji Temple, Near Biscoman Bhawan, Patna-800001. 5. The Joint Commissioner of CGST and C-X, Central Revenue Building (Annexe), Third Floor, Birchand Patel Path, Patna-800001. 6. The Assistant Commissioner of CGST
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