P.R.Papers Vs Deputy State Tax Officer (Madras High Court)
The crux of the issue lies in the failure of the tax authority to provide ample opportunity for the petitioner to present their case. Despite receiving show cause notices, the petitioner claimed they couldn’t attend due to health reasons, particularly cancer. However, even when the petitioner finally appeared for a hearing, the concerned officer was absent. This led to the passing of the assessment orders without granting the petitioner a fair chance to defend themselves. The petitioner subsequently submitted a representation requesting the withdrawal of the ex parte order and another opportunity for a personal hearing, which was ignored by the tax authority. This raised questions about adherence to procedural fairness and the principles of natural justice. The High Court scrutinized the events and cited Section 75(4) of the GST Act, emphasizing the necessity of providing a personal hearing when an adverse decision is contemplated, regardless of whether the assessee explicitly requests it. Drawing from precedent and legal interpretation, the court concluded that the tax authority’s actions violated the principles of natural justice. In light of these findings and precedent, the High Court quashed the assessment orders and remanded the issue back to the tax authority for fresh consideration. The court directed the petitioner to appear for a personal hearing without awaiting further notice, ensuring procedural fairness and adherence to legal principles.
