Case Law Details
HT Media Limited Vs Union of India (Delhi High Court)
The Delhi High Court recently delivered a significant ruling in the case of HT Media Limited vs. Union of India. The court addressed the issue of whether personal hearings should be granted in GST show cause notices, even if the petitioner did not explicitly opt for it. The court’s verdict has implications for the procedural fairness of such notices.
Analysis: HT Media Limited, a media company owning radio channels and newspapers, received a show cause notice proposing a demand after an audit. Despite responding with a detailed 39-page reply, the concerned officer passed an order under section 73 of the CGST Act without granting a personal hearing. The demand of over Rs. 26 crores was confirmed, leading the company to file a writ petition challenging the order and show cause notice.
The Delhi High Court quashed the impugned order and show cause notice, highlighting that the notice lacked specific reasons for the proposed demand. The court criticized the officer for not considering the petitioner’s reply. Additionally, the court emphasized that personal hearings cannot be held before filing a reply to show cause notices, rejecting the Revenue’s contention that the petitioner had not opted for a personal hearing.
Conclusion: The Delhi High Court’s ruling in HT Media Limited vs. Union of India sets a precedent for granting personal hearings in GST show cause notices, irrespective of whether the petitioner specifically opted for it. The court’s decision ensures a fair and transparent process for respondents to present their case before any personal hearings are conducted.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
It will take years when these assessing authorties will understand what is a Speaking Order covering all point of reply filed.
Wastage of presious time