The short point of determination here was whether an opportunity of hearing should be provided if the same is not requested by the concerned person?

short point of determination

Case Title

Grazanio Trasmissioni India Private Limited vs State of Gujarat

Court

Gujarat High Court

Honorable Judges

Justice Sonia Gokani and Justice Gita Gopi

Citation

2022 (7) GSTPanacea 357 HC Gujarat

R/SPECIAL CIVIL APPLICATION NO. 11335 and 11332 of 2022

Judgement Date

23-JUNE-2022

Council for Petitioner

Mr Saurin Mehta

Council for Respondent

MR TRUPESH KATHIRIYA

In favour of

Petitioner

Section

Section 75(4) of the CGST Act, 2017

The Gujarat High Court, Ahmedabad bench of Justices Sonia Gokani and Gita Gopi, held that we deem it appropriate to quash the impugned Order. The respondent No.3 shall avail the opportunity of personal hearing.

Facts of the Case

The petitioner was manufacturing automobile components and exported the goods outside India under Letter of Undertaking without payment of GST. It had reported the value of exports under GSTR-3B in the Column for nil rated / exempt supply and not in the Column for Zero-rated supply. The department SCN proposing demand of ITC along with interest and penalty and order was passed. It filed writ petition against the order.

short point of determination

Court Held

The Honorable High Court observed that as per Section 75(4) of the CGST Act, 2017, an opportunity of hearing is to be provided where a request is received in writing from the person chargeable with tax or penalty or where any adverse decision is contemplated against such person. The department also submitted that opportunity of hearing was not granted since the same was not requested for. However, while so arguing, the provision of Section 75(4) has been missed out. Even without any request having been made when any adverse decision is contemplated, personal hearing is a must. Hence, the same was missing in the instant case and therefore, order was quashed only on the ground of non-availment of opportunity of personal hearing.

short point of determination

Analysis of the Judgement

As per the above case we analyse that Opportunity of personal hearing to be provided even if request for personal hearing is not made by the petitioner.

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Gujarat High Court