GST Update

  Desk of CA. Praveen Sharma – 1083  Series (CAPS) 

 Bombay High Court IN THE CASE OF  Evergreen Recyclekaro (India) Limited v. Principal Commissioner of State Tax, Konkan Bhavan, Belapur & Others

 Evergreen Recyclekaro (India) Limited v. Principal Commissioner of State Tax, Konkan Bhavan, Belapur & Others

 Decision: In favour of the Petitioner

Evergreen Recyclekaro challenged a GST show-cause notice and the consequential adjudication order relating to FY 2020-21.

The company had submitted its written reply and specifically requested a personal hearing. However, the GST authority passed an adverse order without granting the requested hearing.

The Bombay High Court held that merely considering the written reply cannot replace the statutory requirement of providing a personal hearing.

Under Section 75(4) of the MGST Act, a personal hearing must be granted whenever the taxpayer specifically requests it or an adverse decision is contemplated against the taxpayer.

Failure to provide the requested hearing constituted a serious violation of the principles of natural justice.

Accordingly, the Court quashed the show-cause notice and consequential order. The matter was remanded to the competent authority for fresh adjudication after allowing the petitioner to submit its reply and granting a proper opportunity of hearing. All issues on merits were kept open.

Consideration of a written reply and grant of a personal hearing are two separate procedural safeguards. An adverse GST order passed without granting a specifically requested personal hearing cannot be legally sustained.

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Regards

CAPS