Heavy costs and disciplinary proceedings on GST Officers for not providing opportunity of personal hearing to taxpayers by Allahabad HC


Heavy costs and disciplinary proceedings on GST Officers for not providing opportunity of personal hearing to taxpayers by Allahabad HC


๐ˆ๐ฌ๐ฌ๐ฎ๐ž in the proceeding:

The central issue in the case of ๐˜”๐˜ข๐˜ฉ๐˜ข๐˜ท๐˜ฆ๐˜ฆ๐˜ณ ๐˜›๐˜ณ๐˜ข๐˜ฅ๐˜ช๐˜ฏ๐˜จ ๐˜Š๐˜ฐ๐˜ฎ๐˜ฑ๐˜ข๐˜ฏ๐˜บ ๐˜๐˜ด ๐˜‹๐˜ฆ๐˜ฑ๐˜ถ๐˜ต๐˜บ ๐˜Š๐˜ฐ๐˜ฎ๐˜ฎ๐˜ช๐˜ด๐˜ด๐˜ช๐˜ฐ๐˜ฏ๐˜ฆ๐˜ณ ๐˜š๐˜ต๐˜ข๐˜ต๐˜ฆ ๐˜›๐˜ข๐˜น ๐˜ˆ๐˜ฏ๐˜ฅ ๐˜ˆ๐˜ฏ๐˜ฐ๐˜ต๐˜ฉ๐˜ฆ๐˜ณ (๐˜ˆ๐˜ญ๐˜ญ๐˜ข๐˜ฉ๐˜ข๐˜ฃ๐˜ข๐˜ฅ ๐˜๐˜ช๐˜จ๐˜ฉ ๐˜Š๐˜ฐ๐˜ถ๐˜ณ๐˜ต) ๐˜ž๐˜ณ๐˜ช๐˜ต ๐˜›๐˜ข๐˜น ๐˜•๐˜ฐ. – 303 ๐˜ฐ๐˜ง 2024 ๐˜ฅ๐˜ต. 4 ๐˜”๐˜ข๐˜ณ๐˜ค๐˜ฉ 2024 & ๐˜•๐˜ด ๐˜ˆ๐˜จ๐˜ณ๐˜ฐ ๐˜ˆ๐˜ฏ๐˜ฅ ๐˜Œ๐˜ฏ๐˜จ๐˜ช๐˜ฏ๐˜ฆ๐˜ฆ๐˜ณ๐˜ช๐˜ฏ๐˜จ ๐˜—๐˜ณ๐˜ฐ๐˜ฅ๐˜ถ๐˜ค๐˜ต๐˜ด ๐˜๐˜ด ๐˜š๐˜ต๐˜ข๐˜ต๐˜ฆ ๐˜ฐ๐˜ง ๐˜œ.๐˜—. ๐˜ข๐˜ฏ๐˜ฅ ๐˜ˆ๐˜ฏ๐˜ฐ๐˜ต๐˜ฉ๐˜ฆ๐˜ณ (๐˜ˆ๐˜ญ๐˜ญ๐˜ข๐˜ฉ๐˜ข๐˜ฃ๐˜ข๐˜ฅ ๐˜๐˜ช๐˜จ๐˜ฉ ๐˜Š๐˜ฐ๐˜ถ๐˜ณ๐˜ต) [๐˜ž๐˜ณ๐˜ช๐˜ต ๐˜›๐˜ข๐˜น ๐˜•๐˜ฐ. 672 ๐˜ฐ๐˜ง 2024 ๐˜ฅ๐˜ต. 16 ๐˜”๐˜ข๐˜บ 2024] was whether the denial of a

๐’‘๐’†๐’“๐’”๐’๐’๐’‚๐’ ๐’‰๐’†๐’‚๐’“๐’Š๐’๐’ˆ by the Deputy Commissioner under the Uttar Pradesh Goods and Services Tax Act, 2017 ๐’—๐’Š๐’๐’๐’‚๐’•๐’†๐’… ๐’‘๐’“๐’๐’„๐’†๐’…๐’–๐’“๐’‚๐’ ๐’๐’‚๐’˜ ๐’‚๐’๐’… ๐’‘๐’“๐’Š๐’๐’„๐’Š๐’‘๐’๐’†๐’” ๐’๐’‡ ๐’๐’‚๐’•๐’–๐’“๐’‚๐’ ๐’‹๐’–๐’”๐’•๐’Š๐’„๐’†.

๐…๐š๐œ๐ญ๐ฌ of the case:

๐Ÿ”น The petitioner, challenged an order passed by the Deputy Commissioner State Tax.
๐Ÿ”น The petitioner contended that they were not granted a personal hearing despite submitting replies to show- cause notices.
๐Ÿ”น The Deputy Commissioner’s decision was based on the petitioner’s failure to pay tax on certain transactions.

ย Ruling by the Honโ€™ble High ๐‚๐จ๐ฎ๐ซ๐ญ:

๐Ÿ”ธ The Allahabad High Court emphasized the importance of personal hearings in adjudication proceedings.
๐Ÿ”ธ It referred to ๐‘บ๐’†๐’„๐’•๐’Š๐’๐’ 75 (4) of the Act, which mandates granting a hearing upon request or in anticipation of an adverse decision.
๐Ÿ”ธ The court found that the petitioner’s right to a personal hearing was violated.
๐Ÿ”ธ It set aside the impugned order and remitted the matter to the Deputy Commissioner for a fresh decision after affording due opportunity for hearing.
๐Ÿ”ธ The court clarified that the availability of the remedy of appeal under ๐‘บ๐’†๐’„๐’•๐’Š๐’๐’ 107 of the Act does not bar challenging procedural violations.
๐Ÿ”ธ The court imposed ๐’‰๐’†๐’‚๐’—๐’š ๐’„๐’๐’”๐’•๐’” ๐’‡๐’๐’“ ๐’•๐’‰๐’† ๐’„๐’๐’๐’…๐’–๐’„๐’• ๐’๐’‡๐’‡๐’†๐’“๐’†๐’… ๐’ƒ๐’š ๐’•๐’‰๐’† ๐’๐’‡๐’‡๐’Š๐’„๐’†๐’“ and directed the Commissioner to undertake remedial measures including ๐’…๐’Š๐’”๐’„๐’Š๐’‘๐’๐’Š๐’๐’‚๐’“๐’š ๐’‘๐’“๐’๐’„๐’†๐’†๐’…๐’Š๐’๐’ˆ๐’” ๐’‚๐’ˆ๐’‚๐’Š๐’๐’”๐’• ๐’†๐’“๐’“๐’Š๐’๐’ˆ ๐’๐’‡๐’‡๐’Š๐’„๐’Š๐’‚๐’๐’”, where fundamental principles of natural justice may be violated by the adjudicating authorities, without justifiable reason.

Conclusion: The ke๐ฒ ๐“๐š๐ค๐ž๐š๐ฐ๐š๐ฒ๐ฌ from the above judgment could be summarized as under:
โœ… ๐‘ต๐’‚๐’•๐’–๐’“๐’‚๐’ ๐‘ฑ๐’–๐’”๐’•๐’Š๐’„๐’†: Denying a personal hearing violates principles of natural justice.
โœ… ๐‘ท๐’“๐’๐’„๐’†๐’…๐’–๐’“๐’‚๐’ ๐‘ญ๐’‚๐’Š๐’“๐’๐’†๐’”๐’”: Personal hearings are fundamental to fairness in adjudication.
โœ… ๐‘น๐’†๐’Ž๐’†๐’…๐’Š๐’‚๐’ ๐‘ด๐’†๐’‚๐’”๐’–๐’“๐’†๐’”: The court directed the Commissioner, Commercial Tax, to take disciplinary action against erring officials to prevent future violations.