Case Law Details
Eveready Industries India Ltd Vs State of U.P. (Allahabad High Court)
In a significant judgment, the Allahabad High Court has reiterated the necessity of granting a personal hearing before determining tax liabilities under the GST Act. This judgment came in the case of Eveready Industries India Ltd. Vs. State of Uttar Pradesh, highlighting the mandatory procedural requirement under Section 75(4) of the GST Act.
Eveready Industries India Ltd. was issued a show cause notice by the Uttar Pradesh Goods and Services Tax authorities, following an audit of the company’s accounts. The notice, however, did not specify any date, time, or place for a personal hearing, which is a crucial procedural step under the GST Act. The company contended that despite complying with all previous directions and submitting necessary documents, it was not granted a personal hearing, violating Section 75(4) of the GST Act.
Section 75(4) of the GST Act
Section 75(4) of the GST Act mandates that an opportunity of hearing must be granted in two scenarios: when a request is received in writing from the person chargeable with tax or penalty, and when an adverse decision is contemplated against such person. The intent behind this provision is to ensure that taxpayers are given a fair chance to present their case and respond to the charges or findings before any adverse order is passed.
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