Telephonic Conversation of GST Officer with Assessee cannot be treated as personal hearing

Jupiter Exports Vs Commissioner of GST (Delhi High Court)

Delhi High Court held that construing telephonic conversation of Officer with the proprietor as personal hearing is not acceptable. Hence, order passed thereon is in violation of principles of natural justice and also violation of statutory principles of the Central Goods and Services Tax Act (CGST Act).

Facts- The present petition has been filed, inter alia, seeking setting aside of the demand order dated 25.03.2021, passed by the respondent under Section 74(9) of the Central Goods and Services Tax, 2017, raising a total demand of ₹6,67,74,062/-, which includes the tax amount of ₹2,88,90,416/-, interest for a sum of ₹89,93,230/-, and penalty to the tune of ₹2,88,90,416/- for the tax period of April 2018 to March 2019.

The petitioner has challenged the impugned order principally on the ground that the same has been passed in gross violation of the principles of natural justice as the petitioner was not afforded an opportunity of personal hearing before passing of the impugned order by the respondent.

Conclusion- When the law requires that the provisions of Section 75(4) and 75(5) of the CGST Act specifically require that an opportunity of hearing “shall” be granted where the request is received in writing, the same cannot be denied or be substituted by a telephonic conversation.

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