M/S Brilliant Elevators INDIA Co. Private Limited Thru. Authorized Signatory Madhusudan Pandey vs. Commissioner Of Goods And Services Tax GST Lko. Zone And Another

Facts

The petitioner, M/s Brilliant Elevators India Co. Private Limited, filed a writ petition challenging an assessment order. The respondent, Commissioner of Goods and Services Tax, GST LKO Zone, and another authority, had passed the order. The petitioner contended that they were not provided with a personal hearing before the assessment order was passed. The revenue, represented by the Additional Chief Standing Counsel, conceded that no personal hearing was granted to the petitioner. The revenue had no objection to the impugned assessment order being set aside, with liberty to the authorities to proceed afresh after issuing a notice and providing a personal hearing.

Held

The Court accepted the contention of the revenue that no personal hearing was provided to the petitioner. Consequently, the Court quashed the impugned order of assessment and any consequential orders that may have been passed. The Court granted liberty to the respondent authorities to proceed afresh in accordance with the law. This fresh proceeding will include issuing a notice to the petitioner and providing them with a personal hearing before passing a fresh order. The ratio decidendi is that an assessment order passed without providing a personal hearing to the assessee, when such a hearing is a statutory requirement or a principle of natural justice, is unsustainable and liable to be set aside. The writ petition was allowed in terms of the liberty granted.

Key Issues

1. Whether the assessment order passed by the respondent authorities is liable to be quashed on the ground of violation of principles of natural justice, specifically the denial of a personal hearing to the petitioner, as contemplated under the relevant provisions of the Goods and Services Tax Act and Rules? The petitioner argued that the assessment order was bad in law as it was passed without affording them a proper opportunity of being heard, thereby violating the principles of natural justice. The revenue, through the Additional Chief Standing Counsel, conceded that no personal hearing was provided to the petitioner. The revenue agreed that the impugned assessment order should be set aside and the matter remanded for fresh consideration, which would include issuing a notice and providing a personal hearing to the petitioner.