Chander Mukhi Resorts Private Limited Vs State of Himachal Pradesh & Another (Himachal Pradesh High Court)
The Himachal Pradesh High Court has set aside a Goods and Services Tax (GST) order against Chander Mukhi Resorts Private Limited, ruling that the tax authority failed to provide a mandatory personal hearing. The decision in the case of Chander Mukhi Resorts Private Limited Vs State of Himachal Pradesh, came after the company challenged a summary show cause notice and the final order passed without what it considered a fair opportunity to be heard.
The court’s decision was prompted by the findings that while the company’s accountant was present at a hearing on December 24, 2024, the documents presented were returned and no substantive hearing took place. The final order was passed on January 18, 2025, without giving the company a chance to present its case. This action was in direct violation of Section 75(4) of the Himachal Pradesh Goods and Services Tax Act, 2019, which mandates that a personal hearing be granted if requested by the taxpayer.
In a key development, the Additional Advocate General for the state conceded that the actions of the tax department were legally unsustainable. This admission played a significant role in the court’s decision to quash the impugned order.
