GST Update

 Desk of CA. Praveen Sharma – 1004 Series (CAPS) 

UTTARAKHAND HIGH COURT IN THE CASE OF Poddar Ispat Pvt. Ltd.

 The High Court heard both the taxpayer and the department regarding a dispute where tax demand and recovery proceedings were initiated.

The taxpayer challenged the order on the ground that although a reply was submitted and a request for personal hearing was made, no proper opportunity of hearing was given. 

The order was passed on the same day the reply was filed, without informing any hearing date in advance.

The department argued that the reply was considered and hearing was provided, but it was admitted that no prior notice of hearing was given.

The Court observed that merely stating in the order that hearing was given is not sufficient. A proper opportunity requires advance intimation so the taxpayer can prepare and present arguments effectively.

Since no such opportunity was provided, the Court held that the process followed was unfair and against basic principles of justice.

Accordingly, the order was set aside and the matter was sent back to the authority to fix a fresh hearing date and pass a new order after giving proper opportunity.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS